Question: If reserves in the banking system increase by$100, then checkable deposits will increase by$1000 in the simple model of deposit creation when the required reserve

If reserves in the banking system increase by$100, then checkable deposits will increase by$1000 in the simple model of deposit creation when the required reserve ratio is

A.

0.05.

B.

0.01.

C.

0.20.

D.

0.10.

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