Table 29-7. -Refer to Table 29-7. Assume the Fed's Reserve Requirement Is

question 130

Multiple Choice

Table 29-7.
-Refer to Table 29-7. Assume the Fed's reserve requirement is 10 percent and that the Bank of Springfield makes new loans so as to make its new reserve ratio 10 percent. From then on, no bank holds any excess reserves. Assume also that people hold only deposits and no currency. Then by what amount does the economy's money supply increase?

• A)$37,800
• B)$18,000
• C)$2,000
• D)$16,300

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Definitions:

Pathological Conscious Dissociation

An abnormal mental process involving a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual.

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Any unwanted sexual activity, with perpetrators using force, making threats, or taking advantage of victims not able to give consent.

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Bullying behavior that uses spoken words, threats, or name-calling to intimidate or humiliate someone.