Table 10-3 The Following Information Pertains to the Bank of Edmonton

question 7

Multiple Choice

Table 10-3
The following information pertains to the Bank of Edmonton.

-Refer to the Table 10-3.Assume that all other banks hold only the required 5 percent of deposits as reserves and people hold only deposits and no currency.If the Bank of Edmonton decides to hold exactly 5 percent in reserves,by how much would the economy's money supply increase?

• A)$500
• B)$1000
• C)$1500
• D)$2000

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