Suppose that in a simple deposit expansion model, the reserve ratio (r) is equal to 0.1. Which of the following statemen

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Suppose That In A Simple Deposit Expansion Model The Reserve Ratio R Is Equal To 0 1 Which Of The Following Statemen 1 (95.79 KiB) Viewed 9 times

Suppose that in a simple deposit expansion model, the reserve ratio (r) is equal to 0.1. Which of the following statements is true? An increase in reserves of $1000 will lead to a decrease in demand deposits of $10,000. There is no relationship between demand deposits and reserves in this model. An increase in reserves of $10,000 will lead to an increase in demand deposits of An increase in demand deposits of $1000 will lead to an increase in reserves of $10,000. An increase in reserves of $1000 will lead to an increase in demand deposits of $10,000.