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If the Reserve Ratio Is 20 Percent,then $100 of New

Question 19

Multiple Choice

If the reserve ratio is 20 percent,then $100 of new reserves can generate

A) $60 of new money in the economy.
B) $250 of new money in the economy.
C) $500 of new money in the economy.
D) $2,000 of new money in the economy.

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