If the Desired Reserve Ratio Is 10 Percent and There

question 331

Multiple Choice

If the desired reserve ratio is 10 percent and there is no currency drain,then a $100 increase in the monetary base leads the banking system to increase the quantity of money by

• A)$1,000.
• B)$400.
• C)$900.
• D)$110.
• E)$1,100.