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If people decide to hold cash or banks decide to hold excess reserves then: the money supply increases greater than predicted by the central bank.

If people decide to hold cash or banks decide to hold excess reserves then:

the money supply increases greater than predicted by the central bank.

the money multiplier can only be calculated after the fact as the result of the money creation process.

the money supply is determined solely by the central bank's reserve requirement.

interests rate skyrocket.

no effect

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