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If 1000 in reserves is added to the banking system that has

If $1,000 in reserves is added to the banking system that has a required reserve ratio of 20%, and the demand for loans leads to no excess reserves being left in the system, by how much will the money supply increase?

$1,000
$200
$2,000
$5,000
$10,000

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Microeconomics: If 1000 in reserves is added to the banking system that has

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