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Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111 Exercise 4
Assume the required reserve ratio is 10 percent and a bank's excess reserves are $50 million. Explain why checkable deposits resulting from new loans based on excess reserves are not likely to generate the maximum of $500 million.
Explanation
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Based on the multiplier effect the $50 m...
Economics for Today 9th Edition by Irvin Tucker
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