Problems and Applications Q5 You take $150 you had kept under your mattress and deposit it in your bank account

Economics Dec 28, 2021

Problems and Applications Q5 You take $150 you had kept under your mattress and deposit it in your bank account. Suppose this $150 stays in the banking system as reserves and banks hold reserves equal to 12.5 percent of deposits. The total amount of deposits in the banking system increases by $ and the money supply increases by $