The money multiplier can also be calculated as _______, where a is the currency drain ratio and b is the desired reserve ratio.
A)a + b)÷ 1 + b)
B)a + b)÷ 1 + a)
C)1 + b)÷ a + b)
D)a ÷ a + b)
E)1 + a)÷ a + b)

Question

Quizplus · Accepted Answer

The money multiplier is calculated as (1 + a) / (a + b), where 'a' is the currency drain ratio and 'b' is the desired reserve ratio.

The Money Multiplier Can Also Be Calculated as _______, Where