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The reserve requirement is 10%. The potential money multiplier is equal to 10. Part 2 In the real world, the actual money multiplier is likely
The reserve requirement is 10%. The potential money multiplier is equal to 10. Part 2 In the real world, the actual money multiplier is likely to be the potential money multiplier due to actions of the Fed to restrict deposit expansion federal government regulations leakages through currency drain and excess reserves
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