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Assume that all banks are fully loaned out at a desired reserve ratio of 20%. If Jill finds $2,000 of currency that she had previously
Assume that all banks are fully loaned out at a desired reserve ratio of 20%. If Jill finds $2,000 of currency that she had previously misplaced and deposits it in a demand deposit at her chartered bank, what will be the final increase in the money supplyonce the process of multiple deposit expansion has finished.
A)$10,000
B)$8,000
C)There will be no change to the money supply
D)$2,000
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