Question
A bank faces a reserve requirement of 10%. If that bank suddenly receives an increase to excess reserves of $100,000, the money supply will _____.
A bank faces a reserve requirement of 10%. If that bank suddenly receives an increase to excess reserves of $100,000, the money supply will _____.
Group of answer choices
decrease by $100,000
increase by $10,000
increase by $1,000,000
decrease by $10,000
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Microeconomics
Authors: Robert S. Pindyck, Daniel L. Rubinfeld
7th edition
8131725995, 8131725993, 978-8131725993
