You decide to take $400 out of your piggy bank at home and place it in the bank. If the reserve requirement is 2 percent, how much can your $400 increase the amount of money in the economy?

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asked Mar 20, 2017 9.6k views

5 votes

You decide to take $400 out of your piggy bank at home and place it in the bank. If the reserve requirement is 2 percent, how much can your $400 increase the amount of money in the economy?

Advanced Placement (AP)
college

Satya P asked

by Satya P

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It can increase twice the the amount of the money placed in the bank.

Erik Westermann answered Mar 25, 2017

by Erik Westermann

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