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    Economics Principles and Policy Study Set 2
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    Exam 29: Monetary Policy: Conventional and Unconventional
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    If Banks Choose to Hold Excess Reserves
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If Banks Choose to Hold Excess Reserves

Question 76

Question 76

Multiple Choice

If banks choose to hold excess reserves


A) Lending decreases, and the money supply decreases.
B) Lending increases, and the money supply increases.
C) Lending decreases, and the money supply increases.
D) None of these.

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