Multiple Choice
Other things being equal, if the reserve ratio is raised from 10 percent to 25 percent
A) minimum potential value of the money multiplier rises from 0.10 to 0.25.
B) minimum potential value of the money multiplier falls from 10 to 5.
C) maximum potential value of the money multiplier rises from 10 to 25.
D) maximum potential value of the money multiplier falls from 10 to 4.
Correct Answer:
Verified
Correct Answer:
Verified
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