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Assume that Company XYZ directly deposits its annual profit at one of the commercial banks in the country as a checkable deposit and that the

Assume that Company XYZ directly deposits its annual profit at one of the commercial

banks in the country as a checkable deposit and that the reserve ratio is 10%.

Trace out the effects of a $60 million profit of XYZ on the value of checkable bank deposits. What is the size of the money multiplier?

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