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The Recommendation Is That Grades Be Assigned Based On

question 33

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The recommendation is that grades be assigned based on:


Definitions:

Reserves

Deposits that banks have received but have not loaned out.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period.

Spending Multiplier

The ratio of the change in total output to the initial change in spending that brought it about.

Marginal Propensity

The proportion of an additional income that an individual or population spends on consuming rather than saving.

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