Answer:
Depends on the reserve ratio, which in turn determines the money multiplier.
Explanation:
The money multiplier formula = 1 / reserve ratio
For example, if the reserve ratio is 10%, the money multiplier will be 10. If the reserve ratio is 20%, the money multiplier will be 5.
To calculate the total effect of a $20 billion inflow, you must multiply that amount by the money multiplier:
E.g. $20 billion x 10 = $200 billion, or $20 billion x 5 = $100 billion
