Explain how a new demand deposit of $100 can potentially create $500 of new money if the

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Explain how a new demand deposit of $100 can potentially create $500 of new money if the legal reserve requirement is 20 percent.

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Principles of Economics

ISBN: 978-1285064437

7th edition

Authors: Fred M. Gottheil

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Question Posted: Apr 21, 2015 09:46 AM

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Explain how a new demand deposit of $100 can potentially create $500 of new money if the

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The bank keeps 20 of the 100 deposit in cash reserve l...View the full answer

Principles of Economics

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