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Assume that the following data describe the condition of the banking system:
Total Reserves $200 billion
Transactions Deposited $700 billion
Cash held by public $100 billion
Reserve Requirement 0.20
(a) How large is the money supply (M1)?
(b) How large are required reserves?
(c) How large are excess reserves?
(d) By how much could the banks increase their lending activity?
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The price and quantity of lumber and other building materials has gone up recently. Show graphically and explain what might have caused this.
Social and Political Effects of Inflation in India and Other Countries
example of ratio analysis
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