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14 of 23 Suppose that the required reserve ratio is 20%. If Saanvi deposits $4,000 in cash in her checking account, and her bank lends

14 of 23 Suppose that the required reserve ratio is 20%. If Saanvi deposits $4,000 in cash in her checking account, and her bank lends $1,000 to Freda, the money supply initially: Macmillan Learning O increases by $4,100. O remains the same. O increases by $1,000. O decreases by $4,000

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