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If the Reserve Ratio Increased from 10 Percent to 20

Question 82

Multiple Choice

If the reserve ratio increased from 10 percent to 20 percent, which of the following would happen to the money multiplier?

A) It would rise from10 to 20.
B) It would rise from 5 to 10.
C) It would fall from 10 to 5.
D) It would not change.

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