Multiple Choice
If reserves increase by $50 billion and the required reserve ratio is 8%,what is the resulting change in checkable deposits (or the money supply) ,assuming that there are no cash leakages and that banks hold zero excess reserves?
A) $40 billion
B) $400 billion
C) $62.5 billion
D) $625 billion
Correct Answer:
Verified
Correct Answer:
Verified
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