The deposit expansion multiplier measures the maximum possible expansion of the money supply in the banking system.
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The deposit expansion multiplier measures the maximum possible expansion of the money supply in the banking system. What factors could cause the actual expansion of the money supply to differ from that given by the deposit expansion multiplier?
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The deposit expansion multiplier provides an estimate of the potential expansion of the money supply based on the reserves held by banks and the reser...View the full answer
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