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    Principles of Macroeconomics Study Set 12
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    Exam 10: Money, the Federal Reserve, and the Interest Rate
  5. Question
    Suppose the Required Reserve Ratio Is 20
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Suppose the Required Reserve Ratio Is 20

Question 320

Question 320

Multiple Choice

Suppose the required reserve ratio is 20%. A $40 million cash deposit will, at most, allow an expansion of the money supply to


A) $20 million.
B) $80 million.
C) $200 million.
D) $800 million.

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