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    Principles of Money Banking
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    Exam 19: The Instruments of Central Bankin
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    The Deposit Expansion Multiplier Is Decreased If the Federal Reserve
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The Deposit Expansion Multiplier Is Decreased If the Federal Reserve

Question 23

Question 23

Multiple Choice

The deposit expansion multiplier is decreased if the Federal Reserve


A) buys government securities.
B) sells government securities.
C) lowers reserve requirements.
D) raises reserve requirements.

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