Assume That the Federal Reserve Injects $6 Billion into the Financial

question 11

Multiple Choice

Assume that the Federal Reserve injects $6 billion into the financial system. If the reserve requirement is 12%, what is the maximum increase in money supply (in billions) that may result?

• A)$45.00
• B)$49.39
• C)$50.00
• D)$51.30
• E)$55.00

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