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The Fed Increases Bank Reserves in the System by $75

Question 22

Multiple Choice

The Fed increases bank reserves in the system by $75 million. If there are no drains the expected change in bank deposits is


A) $82.5 million.
B) $945 million.
C) $750 million.
D) $1,500 million.
E) $655 million. (1/0.10) * $75 million

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