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Suppose in the Republic of Madison that the regulation o

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Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determ

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Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determination of the reserve ratio. The Central Bank of Madison is charged with regulating the money supply by using open market operations. In April 2011, the money supply was estimated to be 52 million hurls. At the same time, bank reserves were 6.24 million hurls and the reserve requirement was 12 percent. The banking industry, being

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