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    Modern Principles Macroeconomics
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    Exam 15: The Federal Reserve System
  5. Question
    Why Does a One-Dollar Change in Bank Deposits Cause a Change
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Why Does a One-Dollar Change in Bank Deposits Cause a Change

Question 45

Question 45

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Why does a one-dollar change in bank deposits cause a change in the money supply by more than one dollar?

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Banks keep only a fraction of bank depos...

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