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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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