The total increase in the money supply that can be achieved from a given amount of excess reserves can be found by
A) adding the excess reserve ratio to the amount of excess reserves.
B) multiplying the excess reserve ratio by the amount of excess reserves.
C) subtracting the required reserve ratio from the excess reserve ratio.
D) dividing the amount of excess reserves by the required reserve ratio.
E) adding the required reserve ratio to the excess reserve ratio and multiplying the reciprocal of the result by the amount of required reserves.
Correct Answer:
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