What impact might have in terms of the simple deposit

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Problem 1: You read a story in the press that there are growing fears of a credit crunch. What impact might this have in terms of the simple deposit multiplier?

Problem 2: Which of the following is not an assumption of the simple deposit multiplier?

a. Banks always earn a profit

b. Banks hold no excess reserves

c. Consumers hold no cash

d. There is one required reserve ratio

Reference no: EM132640887

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