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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
  5. Question
    When a Bank Has Excess Reserves
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When a Bank Has Excess Reserves

Question 20

Question 20

Multiple Choice

When a bank has excess reserves


A) it can make loans.
B) it can create money.
C) it has too many loans.
D) Both answers A and B are correct.

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