The required reserve ratio
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The required reserve ratio is 10%. If the Fed injects $100,000,000 of reserves into the banking system, by how much will the money supply increase?
a. $1,000,000,000
b. $100,000,000
c. $10,000,000,000
d. None of the above.
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The required reserve ratio is 10%. If the Fed injects $100,000,000 of reserves into the banking system, ...
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