If M Equals the Maximum Number of New Dollars That $R = m / 1$

question 282

Multiple Choice

If m equals the maximum number of new dollars that can be created for a single dollar of excess reserves and R equals the required reserve ratio, then for the banking system,

• A) m = R ? 1.
• B) \(R = m / 1\)
• C) R = m ? 1.
• D) \(m = 1 / R\)

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