If the Required Reserve Ratio Is 15 Percent,there Is No

question 256

Multiple Choice

If the required reserve ratio is 15 percent,there is no currency drain,and banks loan all of their excess reserves,an increase in the monetary base of $20,000 leads to a total increase in the quantity of money of

• A)$3,000.
• B)$20,000.
• C)$133,333.
• D)$200,000.
• E)$300,000.