Ashleeagundiz4712 Ashleeagundiz4712

22-03-2024
Business

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Assume that the required reserve ratio on checkable deposits is 10% and the public's holdings of currency do not change. If reserves in the banking system increase by $1 billion as a result, which of the following is most likely to occur?
a. Checkable deposits will decrease
b. The money supply will decrease
c. The money supply will increase
d. The required reserve ratio will decrease

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