Currently,the currency-deposit ratio is 0.3 and the reserve-deposit ratio is 0.2.The Bank of Canada raises the reserve-deposit ratio to 0.25,as a response to a change in the public's currency-deposit ratio,to maintain the old money multiplier.What is the public's approximate new currency-deposit ratio?
A) 0.22
B) 0.25
C) 0.33
D) 0.35
Correct Answer:
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