Question: Explain why this following statement is true or false? a) if Bank's reserve ratio is 30%, then an addition of $900 of new reserves will

Explain why this following statement is true or false? a) if

Explain why this following statement is true or false? a) if Bank's reserve ratio is 30%, then an addition of $900 of new reserves will create $1000 of new deposits in the banking system. (Show with the calculation)

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