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Required Reserves and the Deposit Multiplier

17. The Monetary System / Required Reserves and the Deposit Multiplier / 문제 10

문제 10

If the money multiplier is 4 and the initial deposit is \$500, what is the total potential increase in the money supply?

A

\$1,000

B

\$500

C

\$4,000

D

\$2,000