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1 you deposit 2000 into your checking account at abc bank

Money Supply

1. You deposit $2,000 into your checking account at ABC bank. The Reserve Ratio is 20%.

A) Make a T-account showing the deposit and the bank making a loan

B) Using the money multiplier, how much will the money supply increase because of the $2,000 deposit?

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Business Management: 1 you deposit 2000 into your checking account at abc bank

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