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Potential increase in the money supply

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Reference no: EM131596321

Assets  Liabilities

Reserves $200

Deposits $1000

Loans $800

The reserve requirement is 10%.

  • The money multiplier is
  • First National can (increase, decrease)____the money supply.
  • The amount First National Bank can change the money supply.$
  • The potential increase in the money supply.

Reference no: EM131596321

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