Exam (elaborations)
PSU Econ 104 Final Exam – Brown || with 100% Error-free Solutions.
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If the required reserve ration is 20%, the simple deposit multiplier is _______ A. 2 B. 5 C. 10 D. 20 correct answers B. 5 1/.2 = 5 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit, B...
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