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Start with a $1,000 deposit and assume a reserve requirement of 10 percent. Now calculate the amount of money created by the banking system after
Start with a $1,000 deposit and assume a reserve requirement of 10 percent. Now calculate the amount of money created by the banking system after five lending cycles (see figure 16.4 in the textbook. TTT Arial : 3 (12pt) T. . QiX Pathop Words: Money Held in Reserve by Bank Money to Lend Total Supply Deposit $100.00 $10.00 $90.00 $190.00 90.00 9.00 81.00 271.00 81.00 8.10 72.90 343.90 C 12.90 72.90 7.29 7.29 65.61 409.51 65.61 6.56 59.05 468.56
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