FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement
on all deposits was 100%. What impact would the change in deposits have on the money
supply?
on all deposits was 100%. What impact would the change in deposits have on the money
supply?
Group of answer choices
The money supply would increase by $100 billion.
The money supply would increase by an infinite amount.
The money supply would decrease by $100 billion.
The money supply would decrease by an infinite amount.
The money supply would not change.
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