Which of the following is true (M = Money supply,cu = currency - deposit ratio,res = reserve - deposit ratio,BASE = monetary base) ?
A) M = [(cu + 1) /(cu + res) ] BASE
B) M = [(cu + res) /(cu + 1) ] BASE
C) BASE = [(cu + 1) /(cu + res) ] M
D) BASE = [cu/(cu + 1) ] M
Correct Answer:
Verified
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