Question: KUI Illstructions Show Instructions Question 20 2 pts Say that commercial banks always keep all excess reserves, instead of lending them out. The FR Bank

KUI Illstructions Show Instructions Question 20 2 pts Say that commercial banks always keep all excess reserves, instead of lending them out. The FR Bank purchases $100 dollars worth of securities from a bank, and the required reserve ratio is 10%. Then according to an (adjusted) simple deposit multiplier model, total deposits in the economy should increase by __ and reserves will increase by $0: 590 $90: $100 $0;$100 @ $90: $90

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