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If banks choose to hold a lower percentage of their deposits as reserves than in the past then their action would increases the money multiplier
If banks choose to hold a lower percentage of their deposits as reserves than in the past then their action would increases the money multiplier and increases the money supply. does not change the money multiplier, but decreases the money supply. decrease the money multiplier and increase the money supply. decreases the money multiplier and decreases the money supply. does not change the money multiplier, but increases the money supply. OOOOOO increases the money multiplier and decreases the money supply
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