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    Exam 5: Policy Makers and the Money Supply
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    If the Reserve Requirement Is 25% and $5,000 Is Injected
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If the Reserve Requirement Is 25% and $5,000 Is Injected

Question 97

Question 97

Multiple Choice

If the reserve requirement is 25% and $5,000 is injected into the banking system, the maximum expansion in the money supply would be


A) $1,250.
B) $20,000.
C) $6,667.
D) $4,000.

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