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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
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    When Part of the Quantity of Money Is Held in Currency
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When Part of the Quantity of Money Is Held in Currency

Question 51

Question 51

Multiple Choice

When part of the quantity of money is held in currency, then


A) a currency drain occurs.
B) there is a higher level of excess reserves.
C) the Fed will find it beneficial to increase the discount rate.
D) the money multiplier will increase in value.

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