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If Reserves in the Banking System Increase by $100, Then

question 153

Multiple Choice

If reserves in the banking system increase by $100, then chequable deposits will increase by $1000 in the simple model of deposit creation when the desired reserve ratio is ________.

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Definitions:

Skeletal Muscle Tissue

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.

Smooth Muscle Tissue

A type of muscle tissue found in the walls of hollow organs like the intestines and blood vessels, which contracts involuntarily.

Motor Unit

A single motor neuron and all the muscle fibers it innervates, working together to perform muscular contraction.

Skeletal Muscle Tissue

A type of muscle tissue that is attached to bones and responsible for voluntary movements.

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