If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of $: Group of answer choices 4,000. 3,000. 10,000. 5,000.
If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of $: Group of answer choices 4,000. 3,000. 10,000. 5,000.
Chapter19: Money Creation
Section: Chapter Questions
Problem 7SQ
Question
If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of $: Group of answer choices 4,000. 3,000. 10,000. 5,000.
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