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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 10%, a Withdrawal of $500
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If the Reserve Requirement Is 10%, a Withdrawal of $500

Question 131

Question 131

Multiple Choice

If the reserve requirement is 10%, a withdrawal of $500 leads to a potential decrease in the money supply of


A) $50.
B) $2,500.
C) $4,500.
D) $5,000.

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