Real-world accuracy of the money multiplier can be affected by:
A)the amount of loans provided by nonbanks.
B)the way the public divides its holding of M1 between currency and certificates of deposit.
C)the willingness of banks to loan excess reserves.
D)all of these.

Question

Quizplus · Accepted Answer

The real-world accuracy of the money multiplier is influenced by all these factors: nonbank loans, public's division of M1 holdings, and banks' willingness to loan excess reserves.

Real-World Accuracy of the Money Multiplier Can Be Affected By