Actual multiplier in the banking system

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Reference no: EM131171431

Identify for each of the following whether the actual multiplier in the banking system is rising or falling? 30 points Banks increase their reserves beyond what is necessary.

The Federal Reserve lowers the target Fed Funds rate.

Households hoard currency more than before.

The Federal Reserve raises the Required Reserve Rate.

Currency increasingly disappears into the underground economy or overseas.

The Federal Reserve sells bonds.

Reference no: EM131171431

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