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The _______ Effect Is a Form of Self-Fulfilling Prophecy

question 7

Multiple Choice

The _______ effect is a form of self-fulfilling prophecy.


Definitions:

M1

A category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Commercial Bank

A commercial bank is a financial institution that offers a range of services including accepting deposits, providing loans, and offering investment products to individuals and businesses.

Liability

A financial obligation or responsibility that an individual or entity owes to another, which is required to be settled in the future.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out.

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