You take $100 you had kept under your mattress and deposit it in your bank account. If
Chapter 29, Problem Problems and Applications 29.4(choose chapter or problem)
You take $100 you had kept under your mattress and deposit it in your bank account. If this $100 stays in the banking system as reserves and if banks hold reserves equal to 10 percent of deposits, by how much does the total amountof deposits in the banking system increase? Byhow much does the money supply increase?
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