Multiple Choice
There is $5,000,000 of currency in Econland, all held by banks as reserves. The public does not hold any currency. If the banks' desired reserve/deposit ratio is 0.25, then the money supply equals:
A) $5,000,000
B) $6,250,000
C) $10,000,000
D) $20,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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