Suppose that the Fed has set the reserve ratio at 10 percent and that banks collectively have

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Suppose that the Fed has set the reserve ratio at 10 percent and that banks collectively have $2 billion in excess reserves. What is the maximum amount of new checkable-deposit money that can be created by the banking system?

a. $0

b. $200 million

c. $2 billion

d. $20 billion

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 02, 2024 01:00 PM

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Suppose that the Fed has set the reserve ratio at 10 percent and that banks collectively have

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Macroeconomics

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