Suppose the current reserve ratio is 25% and the level of checkable deposits represents total reserves. If the Federal Reserve lowered the reserve ratio to 20%, excess reserves are now and the money multiplier is .

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Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .

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