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Suppose you deposit $200 in your checking account at your bank, which has a required reserve ratio of 30%. Initially, as a result of your
Suppose you deposit $200 in your checking account at your bank, which has a required reserve ratio of 30%. Initially, as a result of your this transaction, the size of M1 willincrease . Before any further actions by your bank, the reserves in your bankremain unchanged by $ , while the excess reserves of your bank by $
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