Multiple Choice
Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____.
A) $10,000; $100,000
B) $10,000; $90,000
C) $1,000; $90,000
D) $1,000; $9,000
Correct Answer:
Verified
Correct Answer:
Verified
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