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  3. Study Set
    Macroeconomics Principles
  4. Exam
    Exam 13: Money, Banks, and the Federal Reserve
  5. Question
    The Formula for Determining Changes in Demand Deposits Is the Reciprocal
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The Formula for Determining Changes in Demand Deposits Is the Reciprocal

Question 5

Question 5

True/False

The formula for determining changes in demand deposits is the reciprocal of the required reserve ratio (i.e. ,1/RRR)multiplied by the change in reserves.

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