Consider the Following Data About the Economy: Currency Outstanding (C)=

question 5

Multiple Choice

Consider the following data about the economy: currency outstanding (C) = $1 trillion, total deposits (D) = $750 billion, total reserves (R) = $76 billion, and the required reserve ratio (RR ratio) = 10%. What is the money multiplier for this economy?

• A)1.00
• B)1.63
• C)2.06
• D)3.15

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