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
Correct Answer:

Verified
Correct Answer:
Verified
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