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  3. Study Set
    Macroeconomics Study Set 68
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    Exam 15: Money Creation
  5. Question
    While the Withdrawal of Cash from Banks Does Not Affect
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While the Withdrawal of Cash from Banks Does Not Affect

Question 27

Question 27

True/False

While the withdrawal of cash from banks does not affect money supply immediately, it will affect the banking
system's lending capacity, which will eventually lead to a contraction in money supply.

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