The Fed changes reserve requirements from 10% to 14%, thereby eliminating $750 million in excess reserves. The total change in deposits (with no drains) would be (rounded)
A) $7.917 billion.
B) $6.630 billion.
C) $5.357 billion.
D) $4.934 billion.
E) none of the above. (1/0.14) * $750 million
Correct Answer:
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