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You take $100you had kept in a drawer in your room and deposit it in your bank account.If the bank holds reserves of 10%and the
You take $100you had kept in a drawer in your room and deposit it in your bank account.If the bank holds reserves of 10%and the $100remains in the banking system as reserves, by how much does the total amount of deposits in the banking system increase? By how much does the money supply increase?
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