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Assuming There Are No Excess Reserves,if the Banks Increase the Desired

Question 61

Multiple Choice

Assuming there are no excess reserves,if the banks increase the desired reserve ratio from 10 percent to 20 percent,the money multiplier


A) increases from 10 to 20.
B) increases from 0.10 to 0.20.
C) decreases from 10 to 5.
D) decreases from 20 to 10.

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