How is the multiplier, which takes account of excess reserves and a currency drain, related to the simple multiplier?
A) It is larger.
B) It is smaller.
C) It is impossible to tell and depends on whether the multiplier is stable.
D) It is always equal to the simple multiplier.
Correct Answer:
Verified
Q42: Assume the following: a 10 percent required
Q43: If the required reserve ratio is 10
Q44: A lower reserve requirement would tend to
A)increase
Q45: If the currency deposit ratio increases, ceteris
Q46: The banking system is loaned up and
Q48: Some complicating realities in the multiplier model
Q49: The monetary base is which of the
Q50: In general, for a given change in
Q51: Which of the following is false?
A)Depository institutions
Q52: The currency drain affects the money multiplier
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