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Question
Other things being equal, if the reserve ratio is raised from 10 percent to 20 percent,
A) minimum potential value of the money multiplier rises from 0.10 to 0.20.
B) minimum potential value of the money multiplier falls from 100 to 50.
C) maximum potential value of the money multiplier rises from 10 to 20.
D) maximum potential value of the money multiplier falls from 10 to 5.
Answer
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