Why do banks choosing to hold excess reserves or borrowers choosing to hold some of their loans

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Why do banks choosing to hold excess reserves or borrowers choosing to hold some of their loans in the form of currency reduce the actual impact of the money multiplier below that indicated by the multiplier formula?

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Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

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Question Posted: Jan 23, 2023 02:36 AM

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Why do banks choosing to hold excess reserves or borrowers choosing to hold some of their loans

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