Change the ultimate money-supply multipler

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Suppose that one giant bank, the Haumongous Bank of America,held all the checking deposits of all the people, subject to a 10 percent legal reserve requirement. If Reserve increased by $1 billion, could the Humongous Bank Expect to lend out more than 90 percent of the reserve increase, knowing that the new deposit must come back to it? Would this's change the ultimate money-supply multipler? Explain both answers.

Reference no: EM131805662

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