A simple deposit multiplier equal to one implies a required reserve ratio equal to

Name: A simple deposit multiplier equal to one implies a required reserve ratio equal to
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A simple deposit multiplier equal to one implies that banks do not have the capacity to create additional money through lending because they must keep all deposits as reserves. This situation occurs when the required reserve ratio is 100 percent, meaning banks must hold all deposits in reserve and cannot lend them out.

A Simple Deposit Multiplier Equal to One Implies a Required