If the Fed were to increase the required reserve rate from ten percent to twenty percent, the simple deposit expansion multiplier would:

Name: If the Fed were to increase the required reserve rate from ten percent to twenty percent, the simple deposit expansion multiplier would:
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The simple deposit expansion multiplier is the reciprocal of the required reserve ratio. Increasing the required reserve ratio from 10% (1/10) to 20% (1/5) would halve the multiplier, making it half as large as before.

If the Fed Were to Increase the Required Reserve Rate