Multiple Choice
If the target reserve ratio in the banking system is 10%,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) $0.01.
B) $0.10.
C) $1.00.
D) $10.00.
E) $100.00.
Correct Answer:
Verified
Correct Answer:
Verified
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