Multiple Choice
If the target reserve ratio in the banking system is 1 percent, there is no cash drain, and there are no excess reserves, a new deposit of $1 will lead to an expansion of the money supply of
A) $0.01
B) $1.10
C) $1.00
D) $10.00
E) $100.00
Correct Answer:
Verified
Correct Answer:
Verified
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