If the required reserve ratio were 15 percent, the value of the monetary multiplier would be
A) 5.50.
B) 6.67.
C) 7.32.
D) 8.54.

Name: If the required reserve ratio were 15 percent, the value of the monetary multiplier would be A) 5.50. B) 6.67. C) 7.32. D) 8.54.
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Question

Quizplus · Accepted Answer

The monetary multiplier equals 1/required reserve ratio. Therefore, the monetary multiplier in this case would be 1/0.15 = 6.67.

If the Required Reserve Ratio Were 15 Percent, the Value