Answer:
The answer is $900
Explanation:
Money supply is the total value of money available in an economy at a particular time i.e the total amount of money in an economy at a particular time. A decrease in the reserve ratio leads to an increase in the money supply and an increase in the reserve ratio leads to a decrease in the money supply.
Money multiplier is 1/required reserve ratio
=1/0.1
10
Money supply will be 1 - 10 = 9
Therefore, increase in money supply will be:
new reserves/deposit x money supply
$100 x 9
=$900
