Find the maximum amount that the money supply can increase
What is the maximum amount that the money supply can increase when $1,000 cash is injected into a banking system with a 20-percent reserve requirement? Give two reasons why this maximum may not be reached.
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What is the maximum amount that the money supply can increase when $1,000 cash is injected into a banking system with a 20-percent reserve requirement?
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How is this practice related to diminishing marginal utility? What restrictions must the restaurant impose on the customer in order to make a profit.
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