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    Macroeconomics Study Set 17
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    Exam 14: Money,Banks,and the Federal Reserve System
  5. Question
    If Banks Do Not Loan Out All Their Excess Reserves,then
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If Banks Do Not Loan Out All Their Excess Reserves,then

Question 118

Question 118

Multiple Choice

If banks do not loan out all their excess reserves,then the real world multiplier is


A) smaller than 1/RR.
B) larger than 1/RR.
C) equal to 1/RR.
D) not related to 1/RR.

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