Explain how much does the total amount of deposits in the, Ask an Expert

Economics

You take $100 you had kept under your mattress and deposit it in your bank account. If this $100 stays in the banking system as reserves and if banks hold reserves equal to 10 percents of deposits, by how much does the total amount of deposits in the banking system increase? By how much does the money supply increase?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9273848

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