C Is the Currency Drain and R Is the Desired $\frac{1+C}{R+C}$

question 152

Multiple Choice

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

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

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