Suppose that the excess reserves in Bank A increase by $700. If the required reserve ratio is 25 percent, what is the maximum change in checkable deposits brought about by the banking system?

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter13: The Federal Reserve System
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Suppose that the excess reserves in Bank A increase by $700. If the required reserve ratio is 25 percent, what is the maximum change in checkable deposits brought about by the banking system?

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