If people never withdraw cash from banks and there are no required reserves, how much money can the banking system potentially create for a given amount of new deposits?
A. None.
B. The same amount as the new deposits.
C. An infinite amount of money.
D. The amount of new deposits multiplied by the reserve ratio.
Answer: C
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The main reason why the traditional classical school ceased to be widely accepted was that: a. it did not reflect the realities of the modern economy. b. when Keynes received the Nobel Prize, the academic establishment started believinghis ideas
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If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour, then
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