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If the reserve requirement of a bank is 50%, then the multiplier effect will be ________ and$100 in M1 will increase the money supply by

If the reserve requirement of a bank is 50%, then the multiplier effect will be ________ and$100 in M1 will increase the money supply by ________.

  • a) 0.5; $50
  • b.) 2; $200
  • c.) 0.5; $200
  • d.) 2; $50

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