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    Economics Principles and Policy Study Set 2
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    Exam 28: Money and the Banking System
  5. Question
    If the Required Reserve Ratio, M, Is 20 Percent, Then
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If the Required Reserve Ratio, M, Is 20 Percent, Then

Question 158

Question 158

Multiple Choice

If the required reserve ratio, m, is 20 percent, then the oversimplified money multiplier is


A) 10
B) 5
C) 4
D) 2

Correct Answer:

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