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 20%,then the money supply equals
A) $5,000,000.
B) $6,000,000.
C) $10,000,000.
D) $20,000,000.
E) $25,000,000.
Correct Answer:
Verified
Correct Answer:
Verified
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