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If Bank Reserves Are 200,the Public Holds 400 in Currency,and

Question 116

Multiple Choice

If bank reserves are 200,the public holds 400 in currency,and the desired reserve-deposit ratio is 25%,deposits are ________ and the money supply is ________.


A) 200;600
B) 400;800
C) 600;1,000
D) 800;1,200
E) 2,400;2,800

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