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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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