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For This Question,assume That Individuals Hold Both Currency and Checkable

Question 35

Multiple Choice

For this question,assume that individuals hold both currency and checkable deposits.The money multiplier is equal to


A) 1 / c.
B) 1 / [c + θ(1 - c) ].
C) [c + θ(1 - c) ].
D) 1 / θ.
E) 1 / (1-c)

Correct Answer:

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