Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $800 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $750, then at that same point in time, loans for all banks amount to $6,000

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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