The formula is the 
A) federal funds rate.
B) discount rate.
C) potential money multiplier.
D) actual change in the money supply.
Correct Answer:
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Q462: If proceeds from loans are NOT deposited
Q463: According to the text, the actual M2
Q464: The actual money multiplier multiplied by the
Q465: The potential money multiplier gives us
A) the
Q466: If the reserve ratio decreases from 20
Q468: What is a fractional reserve banking system?
Q469: What are reserves? Discuss the various types
Q470: Explain what happens to the money supply
Q471: When banks reduce the reserve ratio, the
Q472: Suppose the Fed purchases $1 million in
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