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Suppose the Banking System as a Whole Has $600 Billion

question 49

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Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, with a reserve ratio of 11 percent. What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent?


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Laws of Physics

The fundamental principles that govern the natural world, including laws related to motion, energy, force, and matter.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass on those genes.

Darwin's Idea

The theory of natural selection proposed by Charles Darwin, suggesting that species evolve over time through the process of heritable physical or behavioral traits that enhance survival and reproduction.

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Refers to the duration of existence of a living organism, product, or concept from its creation to its cessation or end of function.

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