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Question
Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier to ________, everything else held constant.a. increase from 0.73 to 0.78
b. decrease from 0.73 to 0.61
c. increase from 1.54 to 1.67
d. decrease from 1.67 to 1.54
Answer
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Related questions
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