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Question 3 Assume we are in a banking environment where all banks have the same reserve ratio equals the required reserved ratio, and all bank

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Question 3 Assume we are in a banking environment where all banks have the same reserve ratio equals the required reserved ratio, and all bank customers hold all of their money as deposits. Steven deposits $200 into Bank A, and the current required reserve ratio is 20%. How much does the amount of the deposits in the banking system increase from Michael's deposits? A. $2000 B. $1800 C. $750 D. $1000

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