In the real world, policy makers apply the money multiplier to reserves to predict the amount of money in the economy.
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Q6: The risk that all loans will default
Q7: In practice, the Fed focuses on changing
Q8: Money can be many things, but it
Q9: What allows a Federal Reserve note to
Q10: If the reserve ratio is 0.10, the
Q12: Cash is an example of a liquid
Q13: The U.S. dollar bills you sometimes have
Q14: Money doesn't have to have any inherent
Q15: When a bank creates loans, it also
Q16: The financial sector makes the real sector
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