Macro1 Econ1010 1sem 2016 Macro1 Econ1010 Assignment 2 Chapter 29 30amp 33 Submi

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  • Going back to the original T-account (i.e. the withdrawal of part d. did NOT take place), Suppose that due to the mortgage crisis some people default on their loans, and their value thus decreases by 50. What happens to the leverage ratio (assuming the bank makes no changes in reserves)? (2 marks)
 
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