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The Central bank has set the required reserve ratio to 15% of deposits. Using the multiple deposit creation model, estimate the change in deposits following
The Central bank has set the required reserve ratio to 15% of deposits. Using the multiple deposit creation model, estimate the change in deposits following a $21 billion increase in reserves?
Note 1: show your steps in the reasons box.
Note 2: report your answer with no billion and no $ sign and with two decimal points.
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