If the central bank increases bank reserves by an extra $1 million, then the money supply would increase by $1 million.

Name: If the central bank increases bank reserves by an extra $1 million, then the money supply would increase by $1 million.
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The actual increase in the money supply would typically be more than $1 million due to the money multiplier effect, where banks can lend out a portion of their reserves, leading to a cumulative increase in the total money supply beyond the initial injection.

If the Central Bank Increases Bank Reserves by an Extra