Suppose the current money supply in a country is 100 billion dollars. The central bank decides to print and issue new cu

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answerhappygod
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Suppose the current money supply in a country is 100 billion dollars. The central bank decides to print and issue new cu

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Suppose the current money supply in a country is 100 billion
dollars. The central bank decides to print and issue new currency
notes worth 2 billion dollars. The reserve ratio is 10%. What would
be the eventual increase in money supply?
a) 20 billion dollars
b) 102 billion dollars
c) 110 billion dollars
d) 120 billion dollars
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