Multiple Choice
If the reserve ratio is 100-percent,then a new deposit of $1000 into a bank account
A) eventually increases the money supply by $1000.
B) leaves the size of the money supply unchanged.
C) eventually decreases the size of the money supply by $1000.
D) eventually increases the money supply by $2000.
Correct Answer:
Verified
Correct Answer:
Verified
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