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    Principles of Macroeconomics Study Set 8
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    Exam 16: The Monetary System: Banks and the Money Supply
  5. Question
    If the Reserve Ratio Is 8 Percent,then an Additional $800
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If the Reserve Ratio Is 8 Percent,then an Additional $800

Question 56

Question 56

Multiple Choice

If the reserve ratio is 8 percent,then an additional $800 of reserves can increase the money supply by as much as


A) $6,400.
B) $8,000.
C) $12,500.
D) $10,000.

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