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If the Central Bank of Macroland puts an additional $1,000 of currency into the economy, the public deposits all currency into the banking system, and
If the Central Bank of Macroland puts an additional $1,000 of currency into the economy, the public deposits all currency into the banking system, and banks have a desired reserve/deposit ratio of 0.10, then the banks will eventually make new loans totaling Multiple Choice 000 $1,000; $1,000 $9,000; $9,000 $9,000; $10,000 $1,000; $9,000 and the money supply will increase by lfthe desired reserve/deposit ratio equals 0.10, then every dollar of currency in bank reserves supports every dollar of currency held by the public contributes Multiple Choice 0 O O 0 $1; $10 $010; $1 $1; $0.10 $10; $1 to the money supply. of deposits and the money supply, while If bank reserves are 300, the public holds 600 in currency, and the desired reservedeposit ratio is 025, the deposits are is Multiple Choice 000 1,200; 1,800 600; 1,200 900; 1,500 300; 900 and the money supply
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