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    Exam 18: Money and the Monetary System
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    Suppose the Currency Drain Ratio Is 25 Percent and the Desired
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Suppose the Currency Drain Ratio Is 25 Percent and the Desired

Question 79

Question 79

Multiple Choice

Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent.The money multiplier equals


A) 4.00.
B) 3.00.
C) 2.78.
D) 2.00.
E) 5.42.

Correct Answer:

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