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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 2
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If the Reserve Requirement Is 2

Question 215

Question 215

Multiple Choice

If the reserve requirement is 2.5%, the potential money multiplier is


A) 0.025.
B) 2.5.
C) 4.
D) 40.

Correct Answer:

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