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Suppose that the amount of currency in circulation is $600 billion, agents in the economy hold $4 dollars of currency per $10 in deposits and
Suppose that the amount of currency in circulation is $600 billion, agents in the economy hold $4 dollars of currency per $10 in deposits and the total amount of reserves held by banks is $45 billion. What is the money multiplier equal to?
a. 3.5
b. 1.56
c. 1.3
d. 3.26
e. 2.17
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