Answer to Question #59687 in Macroeconomics for sara

Question #59687
: Suppose Mr. Master deposits AED 400,000 into a one-year Certificate of Deposit at 5% interest. The Central Bank sets the reserve ratio for the banks at 20%. a) Illustrate how the banks create money with the help of given information. (Show first 6 steps) b) Calculate the total money creation in the economy with the help of formula
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Expert's answer
2016-05-06T12:31:03-0400
The answer to the question is available in the PDF file https://www.assignmentexpert.com/homework-answers/economics-answer-59687.pdf

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