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OpenStudy (anonymous):
If the Federal Reserve decreases the reserve rate from 5% to 2.5%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $35,000? A. It decreases the amount by $700,000. B. It increases the amount by $700,000. C. It increases the amount by $1,400,000. D. It decreases the amount by $1,400,000.
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