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Suppose you deposit your paycheck, drawn on another bank. The total money supply in the banking system will _________ because: An increase in the assets
Suppose you deposit your paycheck, drawn on another bank.
The total money supply in the banking system will_________ because:
An increase in the assets of your bank by the amount of your paycheck would simply decrease the assets of another bank by the same amount.
Assets of the other bank would decrease by a fraction of the amount deposited at your bank.
Assets of your bank would increase by more than the amount withdrawn from the other bank.
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