C/D Is the Currency Drain Ratio and R/D Is the Desired

question 39

Multiple Choice

C/D is the currency drain ratio and R/D is the desired reserve ratio.The money multiplier equals

• A)\( \frac{R / D-C / D}{1+R / D} \)
• B)\( \frac{R / D+C / D}{1+C / D} \)
• C)\( \frac{1+C / D}{R / D+C / D} \)
• D)\( \frac{1+R / D}{1+C / D} \)
• E)\( \frac{1+R / D}{R / D+C / D} \)

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