If,during a Deposit Expansion,not All Money Gets Redeposited into the Banking

question 162

Multiple Choice

If,during a deposit expansion,not all money gets redeposited into the banking system and some leaks out as currency,then the real world multiplier is

• A)smaller than 1/RR.
• B)larger than 1/RR.
• C)equal to 1/RR.
• D)not related to 1/RR.

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