The Simple Deposit Multiplier Can Be Expressed as the Ratio

question 4

Multiple Choice

The simple deposit multiplier can be expressed as the ratio of the

• A)change in reserves in the banking system divided by the change in deposits.
• B)change in deposits divided by the change in reserves in the banking system.
• C)required reserve ratio divided by the change in reserves in the banking system.
• D)change in deposits divided by the required reserve ratio.

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