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Explain how the currency drain ratio affects the size of the money multiplier.In your explanation,suppose that in one round of the money creation process a bank gains $1 million in new deposits and reserves.Further suppose that the desired reserve ratio is 10 percent and the currency drain ratio is 50 percent.
Marginal Revenue
The increase in total revenue resulting from the sale of one additional unit of a product or service.
Value of the Marginal Product
The additional revenue a firm generates from employing one more unit of input, keeping other inputs constant.
Marginal Productivity
The additional output generated by adding one more unit of a specific input, while holding all other inputs constant.
Marginal Cost
The cost added by producing one additional unit of a product or service, a crucial concept in economics for understanding optimization.
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