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    Principles of Macroeconomics
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    Exam 9: The Nature and Creation of Money
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    If the Banking System Has $2,000 in Excess Reserves, Then
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If the Banking System Has $2,000 in Excess Reserves, Then

Question 116

Question 116

True/False

If the banking system has $2,000 in excess reserves, then it can expand deposits at most by $10,000 if the required reserve ratio is 10%.

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