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Assuming Initially That Rr = 10%,c = 40%,and E =

Question 132

Multiple Choice

Assuming initially that rr = 10%,c = 40%,and e = 0,an increase in rr to 15% causes the M1 money multiplier to ________,everything else held constant.

A) increase from 2.55 to 2.8
B) decrease from 2.8 to 2.55
C) increase from 1.82 to 2
D) decrease from 2 to 1.82

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