If the Reserve Ratio Is 9 Percent, Then a Decrease

question 261

Multiple Choice

If the reserve ratio is 9 percent, then a decrease in reserves of $6,000 can cause the money supply to fall by as much as

• A)$60,000.00.
• B)$66,666.67.
• C)$90,900.00.
• D)$100,555.56.

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