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Suppose Robina Bank receives a deposit of $53,589 and the reserve requirement is 5%. Answer the following questions using this information. (Round your answers to two decimal places.)
1. What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)?
2. What is the amount that Robina Bank will have in excess reserves from this initial deposit?
3. What is the maximum amount of new money created by the banking system from this one deposit?
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From one year to the next, a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK
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