The simple money multiplier equals

Question

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The simple money multiplier is defined as the reciprocal of the required reserve ratio. This means that the total amount of money that can be created by banks through the lending process is equal to the reciprocal of the required reserve ratio. For example, if the required reserve ratio is 10%, then the simple money multiplier would be 1/0.1, or 10. This means that for every dollar of reserves held by banks, they can create up to $10 of new money through the lending process.

The Simple Money Multiplier Equals