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Assume that the following data describe the condition of the banking system: 

Total reserves $200 billion 
Transactions deposits $800 billion 
Cash held by public $400 billion 
Reserve requirement 0.20 

By how much could the banks increase their lending activity? 
$ billion = ?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9481055

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