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Economics

You take $100 that you had kept under your mattress and deposit it into your bank account. If this $100 stays in banking system as reserves and if banks hold reserves equal to 10% 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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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9306082

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