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Which of the following is an assumption behind the formula for the simple money multiplier, mm = 1/rr? Group of answer choices Banks only lend
Which of the following is an assumption behind the formula for the simple money multiplier, mm = 1/rr? Group of answer choices Banks only lend to their own depositors. Banks lend out all deposits and hold no reserves. All currency is deposited in a bank. All deposits involve a physical exchange of currency. Banks transfer all deposits to the central bank
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Modeling Monetary Economies
Authors: Bruce Champ, Scott Freeman, Joseph Haslag
4th Edition
1316508671, 1316508676, 9781316723302 , 978-1107145221
