What will be the change in the money supply as a result
Problem
Jana withdraws $1,200 in cash from her checking account. If the reserve requirement is 0%, but banks keep 7% of their checking deposits as excess reserves, what will be the change in the money supply as a result of Jana's withdrawal?
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Jana withdraws $1,200 in cash from her checking account. What will be the change in the money supply as a result of Jana's withdrawal?
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