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    Business
  3. Study Set
    Principles of Macroeconomics
  4. Exam
    Exam 9: Consumer Spending, and Credit and Interest
  5. Question
    Assume That the Federal Reserve Sets a Required Reserve Ratio
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Assume That the Federal Reserve Sets a Required Reserve Ratio

Question 10

Question 10

Multiple Choice

Assume that the Federal Reserve sets a required reserve ratio of 5%. Then the money multiplier is


A) 5
B) 20
C) 50
D) 100

Correct Answer:

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