Question
Suppose your mother gives you $5,000 she has had buried in a can in her backyard and you deposit it into your checking account at
Suppose your mother gives you $5,000 she has had buried in a can in her backyard and you
deposit it into your checking account at your bank.
If the reserve requirement is 10%, what is the
the maximum increase in the amount of "new" money created by the banking system?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
