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Karo-lina-s [1.5K]
3 years ago
11

Assume that Linda deposits in her checking account the $1,000 cash she was keeping at home for an emergency. If the required res

erve ratio is 0.20, what is the maximum change in the money supply from her deposit?
Business
1 answer:
Sav [38]3 years ago
6 0

Answer:

The answer is $5000

Explanation:

total change in MS  =change in MB×MM

Money multiplier = 1/0.2= 5

Therefore total change = 1000* 5= $5000

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I hope my answer helps you

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