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The amount first national bank can change the money supply


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Reserves $200

Deposits $1000

Loans $800

The reserve requirement is 10%.

  • The money multiplier is
  • First National can (increase, decrease)____the money supply.
  • The amount First National Bank can change the money supply.$
  • The potential increase in the money supply.

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Business Economics: The amount first national bank can change the money supply
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