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    Modern Principles of Economics Study Set 2
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    Exam 32: Inflation and the Quantity Theory of Money
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    The Money Multiplier Is Greater Than 1 Because Most Banks
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The Money Multiplier Is Greater Than 1 Because Most Banks

Question 127

Question 127

True/False

The money multiplier is greater than 1 because most banks keep more than 100 percent of any increase in bank deposits as reserves.

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