Question: Question 0 1 : If the required reserve ratio r is 2 0 % and banks retain excess reserves equal to 1 0

Question 01: If the required reserve ratio "r" is 20% and banks retain excess reserves equal to 10%,"e" of the deposit. Calculate the demand deposit multiplier and the total increase in the demand deposits of the banking system as a whole resulting from an initial deposit of 10,000.(7 marks)

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