In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the Federal Reserve made a large amount of new funds available to financial markets

The Fed expected this to increase the money supply and the total amount of lending because of the multiplier effect, in which a given amount of new reserves results in a multiple increase in
A) long-term debt. B) stockholders' equity.
C) bank deposits. D) required reserves.

C

Economics

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