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Explain total change in money supply

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Reference no: EM132640088

Suppose commercial Bank A receives a new $100 deposit.

a. What will be the total change in money supply as the result of this increase in deposits? Explain in detail.

b. Discuss any ONE reason why the total change in money supply can be less that your answer in part a). (Think about what does the change in money supply depends on).

Reference no: EM132640088

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