How much does the money supply increase

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Q1. Get an answer from tutors to this homework question now:

You take $100 you had kept under your mattress also deposit it in your bank account. If this $100 stays in the banking systems as reserves also if banks hold reserve equal to 10 percent of deposits, by Elucidate how much does the total amount of deposits in the banking system increase? By elucidate how much does the money supply increase?

Q2. Assume K = 10, Q = KL2.0. Draw the total, average also marginal product curves. Does the production function obey the law of diminishing returns?

Reference no: EM1320646

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