Multiple Choice
If the target reserve ratio in the banking system is 20 percent, 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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