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If the Required Reserve Ratio (RRR) is 1/10, all banks except one have no excess reserves to start with, one bank has $10,000 in initial
If the Required Reserve Ratio (RRR) is 1/10, all banks except one have no excess reserves to start with, one bank has $10,000 in initial excess reserves, what is the maximum amount by which thebanking systemas a whole may increase the money supply (assuming all excess reserves are lent out (this is a money multiplier question)?
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