Multiple Choice
If the target reserve ratio in the banking system is 20%,there is no cash drain,and there are no excess reserves,a new deposit of $1 will lead to an eventual expansion of the money supply of
A) $0.20.
B) $1.20.
C) $2.00.
D) $5.00.
E) $20.00.
Correct Answer:
Verified
Correct Answer:
Verified
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