If the reserve requirement is 25% and a new deposit leads to a potential increase in the money supply of $4,000, the amount of the new deposit must equal
A) $1,000.
B) $4,000.
C) $5,000.
D) $10,000.

Question

Quizplus · Accepted Answer

The Answer of If the reserve requirement is 25% and a new deposit leads to a potential increase in the money supply of $4,000, the amount of the new deposit must equal
A) $1,000.
B) $4,000.
C) $5,000.
D) $10,000.

If the Reserve Requirement Is 25% and a New Deposit