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Which of the following will cause the money multiplier to become smaller?

Roar

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6 years ago

Which of the following will cause the money multiplier to become smaller?

Which of the following will cause the money multiplier to become smaller?
A) an increase in high powered money
B) a decrease in the ratio of reserves to checkable deposits
C) an increase in the public's preference for checking deposits as opposed to holding currency
D) a reduction in high powered money
E) none of the above

Textbook

Macroeconomics

Macroeconomics

Edition: 6^th

Authors: Blanchard, Johnson

Read 33 times

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legendvpn

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This site is awesome

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