In the simple deposit expansion model,an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

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In the deposit expansion model, the money multiplier is the inverse of the reserve ratio. With a 10% reserve ratio, the multiplier is 10. To achieve a $1,000 increase in deposits, the Fed needs to inject $100 into the banking system by purchasing $100 in government bonds.

In the Simple Deposit Expansion Model,an Expansion in Checkable Deposits