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Q26 2 Points Suppose that banks do not hold excess reserves and that the public does not hold currency. The required reserve ratio is 20%
Q26 2 Points Suppose that banks do not hold excess reserves and that the public does not hold currency. The required reserve ratio is 20% and the quantity or reserves in the banking system is $20 billion. Q26.1 1 Point What is the money multiplier in this case? O 0.05. O 0.2. O 5. O 20. Q26.2 1 Point If the Federal Reserve were to increase the quantity of bank reserves by $10 billion, what would be new quantity of money in circulation? $50 billion. $150 billion. $100 billion. $600 billion
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