Which of the following is not true?
a. the money multiplier is the measure of the amount of...
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Which of the following is not true?
a. the money multiplier is the measure of the amount of money ultimately created per dollar deposited in the banking system, when people hold no currency it tells us how much money will ultimately be created by the banking system from an initial inflow of money
b. the higher the reserve ratio, the smaller the money multiplier, and the more money will be created
c. the money multiplier is 1/r
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