...million to a local defense? The government is upgrading its naval fleet and has paid a progress payment of $50 million to a local defense contractor in the form of an electronic funds transfer to the contractor's bank account. If the reserve ratio throughout the banking system is 20% and there are no leakages from the the consequent deposit multiplier process what will be the ultimate rise in the supply of money inclusive of the original $50 million progress payment?
A)$200 million
B)$62.5 million
C)$250 million
D)$60 Million
A)$200 million
B)$62.5 million
C)$250 million
D)$60 Million