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If the Banking System Has $2,000 in Excess Reserves, Then

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If the banking system has $2,000 in excess reserves, then it can expand deposits at most by $10,000 if the required reserve ratio is 10%.

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Definitions:

Herzberg's Two Factor Theory

A motivational theory suggesting that employee satisfaction and dissatisfaction are influenced by two independent sets of factors: hygiene factors and motivators.

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