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If D Equals the Maximum Amount of New Demand-Deposit Money m=E/Dm = E / D

Question 203

Multiple Choice

If D equals the maximum amount of new demand-deposit money that can be created by the banking system on the basis of any given amount of excess reserves; E equals the amount of excess reserves; and m is the monetary
Multiplier, then


A) m=E/Dm = E / D
B) D=E×mD = E \times m
C) D=E−1/mD = E - 1 / m
D) D=m/ED = m / E

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