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    Exam 28: Money and the Banking System
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    The Maximum Increase in the Money Supply Possible from a Deposit
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The Maximum Increase in the Money Supply Possible from a Deposit

Question 99

Question 99

Multiple Choice

The maximum increase in the money supply possible from a deposit of $D into the banking system where R is the reserve requirement is


A) (1 / R) (D − R) .
B) R × D.
C) (1 / R) (1 − R) D.
D) (1 / R) D.

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