Suppose That the Desired Reserve Ratio Is 0

question 110

Multiple Choice

Suppose that the desired reserve ratio is 0.25 and the currency drain ratio is 0.25.The money multiplier is

• A)2.50.
• B)1.40.
• C)2.08.
• D)1.71.
• E)2.40.

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Definitions:

East Berlin

The capital of East Germany from 1949 to 1990, serving as the governmental and cultural center of the country during the Cold War.

West Berlin

The part of Berlin that was occupied by the Allies after World War II and became an enclave within East Germany, symbolizing the Cold War division.

Suez Canal Crisis

A diplomatic and military confrontation in 1956 involving Egypt, Israel, France, and the United Kingdom, following Egypt's nationalization of the Suez Canal, previously controlled largely by British and French interests.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its influence on global culture, economy, and politics.