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A bank holds onto only a fraction of the money that it takes in and lends out the rest. In turn, borrowers put some of
A bank holds onto only a fraction of the money that it takes in and lends out the rest. In turn, borrowers put some of these funds back into the banking system, where they become available to other borrowers. This _____ effect ensures that the cycle expands the money supply. mortgage multiplier loan payment brokerage money multiplier
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