Why do leakages reduce the money multiplier from its potential?

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Core Macroeconomics

ISBN: 978-1464191435

3rd edition

Authors: Eric Chiang

Question Posted: Dec 08, 2015 05:53 AM

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Why do leakages reduce the money multiplier from its potential?

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Leakages occur when banks hold excess reserves or when i...View the full answer

Core Macroeconomics

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