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Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn. Assume that the reserve requirement is...
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The problem:

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Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn.
Assume that the reserve requirement is 20 percent and that the banking system had no excess reserves at the
beginning of the month. What is the maximum change that can be expected in the money supply as a
consequence of these deposits and withdrawals? Instructions: Enter a Positive number to show an increase and a negative number to show a decrease $ [:2 million

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