uppose an individual deposits $4,000 into her chequing account, which eventually leads banks to increase cash reserves of $4,000 and initiates $46,000 in additional loans. The target reserve ratio is [blank1]%. Suppose an individual makes a new deposit of $15,250. If the targeted reserve ratio is 12.5%, calculate the value of new loans generated in the economy.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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uppose an individual deposits $4,000 into her chequing account, which eventually leads banks to increase cash reserves of $4,000 and initiates $46,000 in additional loans. The target reserve ratio is [blank1]%. Suppose an individual makes a new deposit of $15,250. If the targeted reserve ratio is 12.5%, calculate the value of new loans generated in the economy.
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