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Business, 05.11.2019 20:31 graceaowen

Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic? (a) the fed sets the required reserve ratio. (b) the fed is able to affect the level of reserves in the banking system. (c) banks loan out all of their excess reserves. (d) the simple deposit multiplier is equal to 1 divided by the required reserve ratio.

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Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic? (...
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