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Indicate whether the following statement is TRUE or FALSE and explain your answer : When confidence in the financial markets and economy increases, as it

Indicate whether the following statement is TRUE or FALSE and explain your answer: When confidence in the financial markets and economy increases, as it did during the 2013-2019 period, banks tend to decrease their reserve ratios and as a consequence, the money multiplier decreases too.

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The statement is FALSE Heres an explanation Understanding the Concepts 1 Reserve Ratio This is the f... blur-text-image

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