Pearson eText Economics of Money, Banking and Financial Markets, The, Business School Edition -- Instant Access (Pearson+)
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Chapter 17, Problem 6Q
To determine

The effect on checkable deposits in the banking system if you decide to hold $100 less cash than usual and therefore deposit $100 more cash in the bank and if the rest of the public keeps its holdings of currency constant.

Concept introduction:

The process ofmultiple deposit expansion leads to an increase in the money supply.

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