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A Central Bank Raised the Reserve Requirement Ratio from 10

Question 73

Multiple Choice

A central bank raised the reserve requirement ratio from 10 percent to 12 percent.Other things the same,how does the money multiplier change?


A) It increases by 1.67.
B) It decreases by 1.67.
C) It increases by 2.
D) It decreases by 2.

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