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Assuming that the banking system is all loaned up. Based on your above answer, given an increase in checkable deposits of $10 billion, how much

Assuming that the banking system is "all loaned up". Based on your above answer, given an increase in checkable deposits of $10 billion, how much money could the banking system potentially create?

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$0only the Fed can create money (by "printing it")

12.5 billion

$40 billion

$50 billion

$20 billion

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