Answered: If the reserve ratio requirement is 7%,…

If the reserve ratio requirement is 7%, a $2000 deposit will increase the money supply by (roughly) a. 12,000. b. 15,000. c. 20,000. d. 28,500.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 7PA

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Question

If the reserve ratio requirement is 7%, a $2000 deposit will increase the money supply by (roughly)

a. 12,000.

b. 15,000.

c. 20,000.

d. 28,500.

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