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

Name: If the Fed were to decrease the required reserve rate from ten percent to five percent, the simple deposit expansion multiplier would:
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The simple deposit expansion multiplier is 1/RR. If RR decreases from 10% to 5%, then the multiplier would increase from 10 to 20, which is a doubling of the multiplier.

If the Fed Were to Decrease the Required Reserve Rate