The Fed has decreased the money supply.The formula for calculating the resulting change in demand deposits is
A) (1/RRR) minus the change in reserves
B) (1/RRR) multiplied by the change in reserves
C) the change in reserves divided by [1 - (1/RRR) ]
D) RRR minus the change in reserves
E) [1 - (1/RRR) ] multiplied by the change in reserves
Correct Answer:
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