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How much will increase the total amount of deposits

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Reference no: EM132855852

You take $500 that you held as currency and put it into the banking system. The reserve ratio is equal to 20%

Problem A) Calculate the money multiplier.

Problem B) By how much will increase the total amount of deposits in the banking system?

Problem C) By how much will increase the money supply?

Reference no: EM132855852

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