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1. Explain why the simple money multiplier (1/r) overstates the true or complete money multiplier expressed as: m= (1+c) / (c + r + e).
1. Explain why the simple money multiplier (1/r) overstates the true or complete money multiplier expressed as: m= (1+c) / (c + r + e).
2. Discuss the factors that determine the money supply.
3.Briefly explain the effect of reserve requirements on money supply.
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