Why does the holding of excess reserves by banks and the holding of currency by households and firms cause the real-world deposit multiplier to be less than the simple deposit multiplier?

Question

Quizplus · Accepted Answer

The Answer of Why does the holding of excess reserves by banks and the holding of currency by households and firms cause the real-world deposit multiplier to be less than the simple deposit multiplier?

Why Does the Holding of Excess Reserves by Banks and the Holding