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6. The money multiplier formula shows effects of
A. a cash deposit into banking system on the money supply
B. low interest rates on creditors over a long period
C. federal reserve discount rate reductions on the bond markets
D. a required reserve ratio on excess reserves

I need help on this, Unit 6 Lesson 10, please. CCA

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Answer: a cash deposit into banking system on the money supply

The money multiplier refers to the ratio of deposits to the reserves in a certain banking system. The money multiplier formula is caused by a cash deposit in a bank on the money supply.

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