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Economics

Yesterday Bank A had no excess reserves. Today it received a new deposit of $4,000.

1. What is the maximum amount by which the money supply can be increased as a result of Bank A's new loan?

2. If the bank maintains a reserve requirement of two percent, what is the maximum loan that Bank A can make?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91224075

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