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Evaluate the policy options open to a government

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Reference no: EM132631590

I deposited Rs. 3 million of my money in a Habib Bank Limited, State Bank of Pakistan: Required rate of reserve ratio (RRR): Weekly Average Demand Liability was set as 10.0 % in June 2020. You are required to calculate the change in the money supply in the economy. If RRR decreased to 5% in August 2020, what will happen with the same deposit of Rs. 3 million. You are also required to compare and discuss it in few lines.

(B). Evaluate the policy options open to a government when the Government wants to close a deflationary gap (negative output gap) and reduce unemployment.

Reference no: EM132631590

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