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How Does the Desired Reserve Ratio Affect the Money Multiplier

Question 111

Multiple Choice

How does the desired reserve ratio affect the money multiplier?  


A)  the higher the desired reserve ratio, the larger the money multiplier 
B)  the higher the desired reserve ratio, the smaller the money multiplier 
C)  the higher the desired reserve ratio, the more likely there will be no effect on the money multiplier 
D)  the higher the desired reserve ratio, the more likely the money multiplier may increase or decrease

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