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    Macroeconomics Principles Study Set 1
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    Exam 12: Money Creation and the Federal Reserve
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    If Banks Increase Excess Reserves to Increase Their Ability to Absorb
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If Banks Increase Excess Reserves to Increase Their Ability to Absorb

Question 149

Question 149

Multiple Choice

If banks increase excess reserves to increase their ability to absorb a higher rate of defaults, the _____ multiplier will _____.


A) potential; rise
B) potential; fall
C) actual; rise
D) actual; fall

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