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Question
Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the excess reserve ratio = 5%, a decrease in the excess reserve ratio to 0% causes the M1 money multiplier to ________, everything else held constant.a. increase from 2.33 to 2.55
b. decrease from 2.55 to 2.33
c. increase from 1.67 to 1.82
d. decrease from 1.82 to 1.67
Answer
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Related questions
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