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Posted on Jul 11, 2024

If the reserve requirement for demand deposits is 10%, what is the maximum change in the money supply that the banking system can create if

1. The Federal Reserve injects $1,000,000 of new reserves into the banking system

2. A person deposits $1,000,000 in cash into a commercial bank checking account

3. IBM borrows $1,000,000 from an insurance company

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