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    Macroeconomics Study Set 68
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    Exam 15: Money Creation
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    The Multiple by Which the Commercial Banking System Can Expand
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The Multiple by Which the Commercial Banking System Can Expand

Question 26

Question 26

Multiple Choice

The multiple by which the commercial banking system can expand the supply of money is equal to the reciprocal of


A) the MPS.
B) its actual reserves.
C) its excess reserves.
D) the reserve ratio.

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