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Business, 17.04.2020 18:50 fantasticratz2

Assume that the required reserve ratio is 10 percent, banks keep no excess reserves, and borrowers deposit all loans made by banks. Suppose you have saved $100 in cash at home and decide to deposit it in your checking account. As a result of your deposit, the money supply can increase by a maximum of
a. $800
b. $900
c. $1,000
d. $1,100
e. $1,200

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