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Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank. What is the deposit multiplier? What is the total

Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank.

  • What is the deposit multiplier?
  • What is the total decrease in deposits in the banking system?
  • What is the change in the money supply?

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