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Suppose that initially a bank has excess reserves of $800, and the reserve ratio is 35%. Then Efua Apeatsewa deposits $2,000 of cash into her
Suppose that initially a bank has excess reserves of $800, and the reserve ratio is 35%. Then Efua Apeatsewa deposits $2,000 of cash into her checking account and the bank lends $400 to Ekua Ephrim. That bank can lend an additional: $100. $800. $900. $1,700
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