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

question 71

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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