The Oversimplified Money Multiplier Formula, When the Required Reserve Ratio

question 30

Multiple Choice

The oversimplified money multiplier formula, when the required reserve ratio is m, is

• A)change in money supply = change in reserves × m.
• B)change in money supply = (1 / m) / change in reserves.
• C)change in money supply = (1 / m) × change in reserves.
• D)change in money supply = m / change in reserves.

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