If the Required Reserve Ratio Is RR,the Simple Deposit Multiplier $\frac{1}{(1-R R)}$

question 156

Multiple Choice

If the required reserve ratio is RR,the simple deposit multiplier is defined as

• A) \(\frac{1}{(1-R R)}\)
• B) \(\frac{1}{(R R)}\)
• C) \(\frac{1}{(R R)}\) × change in bank reserves.
• D) \(\frac{1}{(1-R R)}\) × change in bank reserves.

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