Suppose that the banking system in Canada has a required reserve ratio of 10 percent while
Suppose that the banking system in Canada has a required reserve ratio of 10 percent while the banking system in the United States has a required reserve ratio of twenty percent. In which country would $100 of initial excess reserves be able to cause a larger total amount of money creation?
a. Canada.
b. United States.
Abhinav
05-Dec-2019