If banks faced a 100 percent reserve requirement, the money multiplier would be:

Name: If banks faced a 100 percent reserve requirement, the money multiplier would be:
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With a 100 percent reserve requirement, banks would not be able to lend out any of the deposits they receive, meaning each dollar deposited would only support a single dollar in the money supply, resulting in a money multiplier of 1.0.

If Banks Faced a 100 Percent Reserve Requirement, the Money