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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 the Reserve Requirement Is 25%, a New Deposit of $1,000
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If the Reserve Requirement Is 25%, a New Deposit of $1,000

Question 140

Question 140

Multiple Choice

If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of


A) $250.
B) $4,000.
C) $5,000.
D) $10,000.

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