Multiple Choice
If the desired reserve/deposit ratio equals 0.10, then every dollar of currency in bank reserves supports ________ of deposits and the money supply, while every dollar of currency held by the public contributes ________ to the money supply.
A) $1; $10
B) $0.10; $1
C) $1; $0.10
D) $10; $1
Correct Answer:
Verified
Correct Answer:
Verified
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