1. This section deals with increase money supply given two scenarios (see “a”� and “b”� below). In Westlandia, the public holds 50% of money one (M1) in the form of currency, and the required reserve ratio is 20%. 2. Explain how each of the following changes quantity of money (money supply) in the economy. 3. Assume that in a country the total holdings of banks were as follows:
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