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This model uses static comparative statics -- no genuine time axis exists.
The central bank buys bonds, expanding the monetary base and raising M through the multiplier.
A higher required reserve ratio shrinks the multiplier, reducing the money supply for a given base.
The public withdraws deposits in favor of currency, raising the currency ratio and contracting the multiplier.
Diagram, readouts, and summary update with each change.
Central bank
Banking
Public behavior
Impact summary
Current money supply
Money supply
560.0
Money multiplier
2.80
Monetary base
200.0
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