"how much will the total money supply increase as a result when the required reserve ratio is"

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asked Sep 23, 2018 55.4k views

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Adam Liter · Answer 1 · 2018-09-27T14:04:35+0000

SolutionMoney multiplier = Initial amount * (1/Required Reserve Ratio)
Money multiplier = 900 * (1/.10)
Money multiplier = $4,000
Now u will deduct 800 from $4,000 since u only need the increase

"how much will the total money supply increase as a result when the required reserve ratio is"

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