3/5) The three types of multiple deposit expansion question
Type 1: calculate the initial chance is excess reserves
-aka the amount a single bank can loan from the initial deposit.
Type 2: calculate the change in loans in the banking system
Type 3: calculate the change in the money supply.
• sometimes type 2 and type 3 will have the same result (ie. No fed involvement)
Type 4: calculate the change in demand deposits.
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