Answered: If the reserve ratio requirement is 7%,…

If the reserve ratio requirement is 7%, a $2000 deposit will increase the money supply by (roughly) a. 12,000. b. 15,000. c. 20,000. d. 28,500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the reserve ratio requirement is 7%, a $2000 deposit will increase the money supply by (roughly)

a. 12,000.

b. 15,000.

c. 20,000.

d. 28,500.

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