What is the simple money multiplier equal to?

Name: What is the simple money multiplier equal to?
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Quizplus · Accepted Answer

The simple money multiplier is equal to the reciprocal of the desired reserve ratio. This means that if the desired reserve ratio is 10%, the simple money multiplier would be 1/0.1, or 10. This multiplier represents the potential increase in the money supply that could be generated by a given amount of reserves in the banking system.

What Is the Simple Money Multiplier Equal To