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MMLU / The potential amount of money created after the Fed increases bank reserves will…

Problem

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question

The potential amount of money created after the Fed increases bank reserves will be diminished if

choices

  1. the public prefers to hold less cash.
  2. the velocity of money falls.
  3. depository institutions decide to hold more excess reserves.
  4. the marginal propensity to consume falls.

subject

high_school_macroeconomics

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