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Which statement does NOT explain why the actual money multiplier and the potential money multiplier are different? A.) The interest rate that banks pay on
Which statement does NOT explain why the actual money multiplier and the potential money multiplier are different?
A.) The interest rate that banks pay on deposits is very low.
B.) Foreign consumers, businesses, and governments hold U.S. dollars.
C.) Foreign deposits in American banks are not counted in the actual money multiplier.
D.) Banks hold excess reserves during tough economic times.
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