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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 25%, the Potential Money Multiplier
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If the Reserve Requirement Is 25%, the Potential Money Multiplier

Question 25

Question 25

Multiple Choice

If the reserve requirement is 25%, the potential money multiplier is


A) 0.25.
B) 4.
C) 5.
D) 25.

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