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    Macroeconomics Principles Study Set 1
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    Exam 12: Money Creation and the Federal Reserve
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    If a Bank's Required Reserve Ratio Is 2
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If a Bank's Required Reserve Ratio Is 2

Question 196

Question 196

True/False

If a bank's required reserve ratio is 2.5%, an initial injection of $4,000 has the potential to increase the overall money supply by up to $160,000.

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