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You take Rs. 300 you had kept under your mattress and deposit it in your bank account. If this Rs. 300 stays in the banking
You take Rs. 300 you had kept under your mattress and deposit it in your bank account. If this Rs. 300 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? By how much does the money supply increase
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