If the Money Multiplier Is Approximated to Be 10,it Means

question 95

Multiple Choice

If the money multiplier is approximated to be 10,it means:

• A)banks create 10 dollars in deposits from each original deposit of a dollar.
• B)banks create approximately 10 times the amount of cash in the economy.
• C)the economy overall has 10 times the amount of deposits as cash that exists.
• D)All of these are true.

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Definitions:

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