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    Economics Study Set 8
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    Exam 28: The Financial Sector and the Economy
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    If Banks Hold Excess Reserves Whereas Before They Did Not
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If Banks Hold Excess Reserves Whereas Before They Did Not

Question 82

Question 82

Multiple Choice

If banks hold excess reserves whereas before they did not, the money multiplier:


A) will become larger.
B) will become smaller.
C) will be unaffected.
D) might increase or might decrease.

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