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Using the formula for the simple deposit multiplier, if the reserve ratio is 10 per cent, what is the maximum increase in demand account deposits

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Using the formula for the simple deposit multiplier, if the reserve ratio is 10 per cent, what is the maximum increase in demand account deposits that will result from an initial customer deposit of $8000? Show your workings alongside your answer. (2 marks) Explanation Answer Technological change Technological change and a higher level of capital per worker A higher level of capital per worker Maximum increase in demand account deposits

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