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Let's assume that the banking system has a required reserve ratio equal to 20%.Let's also assume that individuals hold no cash.If the banking system has
Let's assume that the banking system has a required reserve ratio equal to 20%.Let's also assume that individuals hold no cash.If the banking system has $90,000 in outstanding deposits and actual reserves equal to $30,000, the maximum amount the banking system can now add to the money supply is:
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$30,000
$90,000
$60,000
$14,000
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