The Money Multiplier Equals

question 64

Multiple Choice

The money multiplier equals

• A)1/R,where R represents the quantity of reserves in the economy.
• B)1/R,where R represents the reserve ratio for all banks in the economy.
• C)1/(1+R),where R represents the quantity of reserves in the economy.
• D)1/(1+R),where R represents the reserve ratio for all banks in the economy.

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