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Assume that all commercial banks are loaned up. Total deposits in the banking system are $200 million. Assume later that required reserve ratio is increased.

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Assume that all commercial banks are loaned up. Total deposits in the banking system are $200 million. Assume later that required reserve ratio is increased. The money supply will decrease .a O increase .b .b O not change because there was no change .c .CO .in deposits .d .d O not change because the required reserve .ratio has no impact on money supply

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