If a bank has $10,000 in demand deposits, and the reserve requirement is 100 percent, then this bank can:
not loan out any of this money.
loan out all of the money that has been deposited.
loan out $10,000.
loan out $1,000.
The equation of exchange illustrates the direct relationship which exists between ___________ and ____________.
the money supply; interest rates
interest rates; productivity
the money supply; the price level
the money supply; the budget deficit
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