In A Hypothetical Economy High Power Money Is 2000 Muc And The Money Supply Is 6
In a hypothetical economy, high-power money is 2000 MUC and the money supply is 6000 MUC. Currently deposit ratio is estimated to be 0.2. The central bank sells government securities worth 500 MUC in the open market. Even after the open market sale, if the central bank wants to maintain the money supply at the same level, the reserve ratio should be
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