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IceJOKER [234]
3 years ago
10

If the Central Bank of Macroland puts an additional 1,000 dollars of currency into the economy, the public deposits all currency

into the banking system, and banks have a desired reserve/deposit ratio of 0.10, then the banks will eventually make new loans totaling ______ and the money supply will increase by _______.
Business
1 answer:
yan [13]3 years ago
5 0

Answer:

the banks will eventually make new loans totaling 9,000 and the money supply will increase by 10,000

Explanation:

The money multiplier is 1/0.10= 10. If 1,000 new dollars of currency are deposited in the banks, they must hold $100 as required reserves and can lend out $900. Through the money multiplier, loans will increase by $900*10= $9000. The expansion of the money supply is the original deposit + the increase in loans or $1,000+ $9,000= $10,000

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Explanation:

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3 years ago
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Rama09 [41]

Answer:

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Explanation:

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8 0
3 years ago
As the employees began to leave the meeting room, some were overheard grumbling that those at the top were just profiteers, that
MAXImum [283]
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Answer:

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Answer:

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This is what I know so far. Hope this helps.

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