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Suppose that a country initially had no banks,but did have currency of $10 million.The country then established a banking system with a reserve requirement of
Suppose that a country initially had no banks,but did have currency of $10 million.The country then established a banking system with a reserve requirement of 5% and the citizens of the country deposited half of the currency into the banking system. If its banks do not hold excess reserves what is the countries money supply now?
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