Multiple Choice
If the reserve ratio is 10%, then a $100 increase in bank deposits can potentially lead to:
A) a decrease of $1,000 in the money supply.
B) an increase of $1,000 in the money supply.
C) a decrease of $90 in the money supply.
D) an increase of $90 in the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
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