The formula for the money multiplier (mm) is
A) mm = (1 + re) /(cu + re)
B) mm = (1 + cu) /(cu + re)
C) mm = (1 - cu) /(cu + re)
D) mm = (cu + re) /(1 - cu)
E) mm =1/(cu + re )
Correct Answer:
Verified
Q6: The relationship between the stock of money
Q7: The size of the money multiplier
A)cannot be
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