Table 29-5 -Refer to Figure 29-5.Assume That All Other Banks Hold Only

question 142

Multiple Choice

Table 29-5

-Refer to Figure 29-5.Assume that all other banks hold only the required 4 percent of deposits as reserves and that people hold only deposits and no currency.If the Bank of Springfield decides to hold reserves of 4 percent,by how much would the economy's money supply increase?

• A)$50,200
• B)$60,000
• C)$65,400
• D)$72,000