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The central bank of a country requires the commercial banks to hold 16% of deposits on hand as reservesPeople in this country deposit all of
The central bank of a country requires the commercial banks to hold 16% of deposits on hand as reservesPeople in this country deposit all of their money in commercial banks, and commercial banks lend out as much money as they legally can. If Bob finds $785 in his couch cushions and deposits it in his commercial bank of choice, by how much does the money supply increase in this country, altogether? Answer to the nearest dollar, but don't include the dollar sign in your answer.
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