(Answered) If 500 cash is deposited into a commercial bank demand

Economics

If $500 cash is deposited into a commercial bank demand deposit and another customer borrows $750 what happens to the money supply? What can be said about reserves if the reserve requirement is 20%? What is the money multiplier in this example? How much can the money supply change?

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Macroeconomics, Economics

Category:- Macroeconomics
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