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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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