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Suppose that the banking system in Canada has a required reserve ratio of 10 percent while

Suppose that the banking system in Canada has a required reserve ratio of 10 percent while

Suppose that the banking system in Canada has a required reserve ratio of 10 percent while the banking system in the United States has a required reserve ratio of twenty percent. In which country would $100 of initial excess reserves be able to cause a larger total amount of money creation?

a. Canada.

b. United States.

Abhinav 05-Dec-2019

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