Multiple Choice
In Econland,all $5,000,000 in currency is held by banks as reserves.The public does not hold any currency.If the banks' desired reserve-deposit ratio is 10%,the money supply in Econland equals
A) $4,545,545.
B) $5,000,000.
C) $5,500,000.
D) $50,000,000.
E) $55,000,000.
Correct Answer:
Verified
Correct Answer:
Verified
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