In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10 percent, deposits in Macroland equal ________ and the money supply equals ________.
A. $50,000,000; $55,000,000
B. $50,000,000; $60,000,000
C. $55,000,000; $55,000,000
D. $100,000,000; $100,000,000
Answer: A
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