If the reserve ratio is one-tenth,then a $1,000 injection of reserves will increase the money supply by $100.

Name: If the reserve ratio is one-tenth,then a $1,000 injection of reserves will increase the money supply by $100.
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With a reserve ratio of one-tenth (or 10%), a $1,000 injection of reserves into the banking system can potentially increase the money supply by up to $10,000, according to the money multiplier formula (1/reserve ratio).

If the Reserve Ratio Is One-Tenth,then a $1,000 Injection of Reserves