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b. Suppose the reserve requirement is 20% and cash withdrawal of 20%. A deposit of $100,000 will cause money supply to expand by how much.
b. Suppose the reserve requirement is 20% and cash withdrawal of 20%. A deposit of $100,000 will cause money supply to expand by how much. Can you comment on how the process of a deposit of $100,000 could expand the money supply in the economy?
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