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Suppose that the Central Bank decides to change the required reserve ratio from 6% to 4%. What will be the impact to the money supply

Suppose that the Central Bank decides to change the required reserve ratio from 6% to 4%. What will be the impact to the money supply if new deposits in the economy are 100 million?

a. $200 million b. $400 million c. $5 billion d. $2 billion

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