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If Reserves in the Banking System Increase by $100, Then

question 141

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If reserves in the banking system increase by $100, then chequable deposits will increase by $100 in the simple model of deposit creation when the desired reserve ratio is ________.


Definitions:

State Government

The governing body of a state within a federated entity, such as the United States, which has its own separate powers and jurisdiction within its territory, following a constitution or laws specific to that state.

Personal Jurisdiction

The legal power a court has to make a decision regarding the party being sued within its territory.

Courts

Institutions established by governments to adjudicate disputes, interpret laws, and administer justice within a legal framework.

Persons

Legal entities that include human beings as well as corporates and other entities recognized by law as having rights and obligations.

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