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    5. Money Multiplier is always

    Question

    Money Multiplier is always

    A > 1 Correct Answer Incorrect Answer
    B < 1 Correct Answer Incorrect Answer
    C = 0 Correct Answer Incorrect Answer
    D Infinite Correct Answer Incorrect Answer
    E Can’t say Correct Answer Incorrect Answer

    Solution

    Money multiplier is always greater than 1 because it is the reciprocal of Reserve ratio. 

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