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Suppose all banks maintain a 50 percent reserve ratio. If an individual deposits $1,000 of currency in a bank, the money supply increases by $2,000.

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Suppose all banks maintain a 50 percent reserve ratio. If an individual deposits $1,000 of currency in a bank, the money supply increases by $2,000. O the money supply decreases by $2,000. the money supply is unaffected. the money supply decreases by $500

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