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Suppose that the banking system of Upperlandhas excess reserves of $50 million, the desired reserve ratio is25 percent, and the currency drain ratio is 50
Suppose that the banking system of Upperlandhas excess reserves of $50 million, the desired reserve ratio is25 percent, and the currency drain ratio is 50 percent. By how much will the quantity of money increase?
Select one:
a.100 million
b.$50 million
c.$12.5 million
d.$25 million
e.$37.5 million
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