The money multiplier equals
A) 1/R,where R represents the quantity of reserves in the economy.
B) 1/R,where R represents the reserve ratio for all banks in the economy.
C) 1/(1+R) ,where R represents the reserve ratio for all banks in the economy.
D) 1/(1+R) ,where R represents the largest reserve ratio among all banks in the economy.
Correct Answer:
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A)hold more reserves
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A) both its reserves
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