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Suppose you found a $100 bill that was lost for many years under your grandmothers mattress. If the banking system has a cash drain of
Suppose you found a $100 bill that was lost for many years under your grandmothers mattress. If the banking system has a cash drain of 5%, its target reserve ratio is 20%, and all excess reserves were lent out, your new deposit of the $100 bill would lead to an eventual expansion of the money supply of?
$500
$200
$25
$20
$400
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