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13. Problems and Applications Q5 You take $300 you had kept under your mattress and deposit it in your bank account. Suppose this $300 stays
13. Problems and Applications Q5
You take $300 you had kept under your mattress and deposit it in your bank account. Suppose this $300 stays in the banking system as reserves and banks hold reserves equal to 15 percent of deposits.
The total amount of deposits in the banking system increases by$_______, and the money supply increases by $_____.
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