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Suppose Each Bank in Canada Had to Keep 100 Percent

Question 28

Multiple Choice

Suppose each bank in Canada had to keep 100 percent of chequable deposits as reserves.For each $1 the Bank of Canada injects into new reserves, by what amount does the money supply increase?  


A)  by as much as $1 
B)  by as much as $2 
C)  by as much as $100 
D)  by as much as $200

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