A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new deposit of $10,000 is made in A-1, then A-1
A) can immediately loan $9,000.
B) is required to hold the deposit in its reserves.
C) can immediately loan $100,000.
D) can immediately loan a multiple of the $10,000.
E) can immediately loan $10,000.
A
Economics
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What is the national income identity for an open economy?
What will be an ideal response?
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