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    Principles of Macroeconomics
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    Exam 10: The Monetary System
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    If the Reserve Ratio Is 10 Percent and a Bank
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If the Reserve Ratio Is 10 Percent and a Bank

Question 43

Question 43

Multiple Choice

If the reserve ratio is 10 percent and a bank receives a new deposit of $20, what happens to the bank's reserves in the longer term?


A) increase by $2
B) increase by $18
C) increase by $20
D) increase by $200

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