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You take Rs. 100 you had kept under your mattress and deposit it in your bank account. If this Rs. 100 stays in the banking
You take Rs. 100 you had kept under your mattress and deposit it in your bank account. If this Rs. 100 stays in the banking system as reserves and if banks hold reserves equal to 20 percent of deposits,
- By how much does the total amount of deposits in the banking system increase?(Please write only numbers in the blank. Do not write commas or currency signs in the blank)
- By how much does the money supply increase?
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