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    Macroeconomics Principles Study Set 1
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    Exam 12: Money Creation and the Federal Reserve
  5. Question
    If the Reserve Requirement Is 1%, a $10,000 Decrease in Deposits
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If the Reserve Requirement Is 1%, a $10,000 Decrease in Deposits

Question 21

Question 21

True/False

If the reserve requirement is 1%, a $10,000 decrease in deposits means that the actual money supply will decrease by more than $1 million.

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