If $500 is deposited into the First Bank of Oz, then:
A) the bank will be able to create money by $3333
B) excess reserves initially increase by $75
C) required reserves increase by $75
D) total reserves initially increase by $425
Correct Answer:
Verified
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A)short-run trade-off between prices
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A)the reserve ratio
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A)hold only
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A)occur when the discount rate rises
B)occur
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