The money multiplier can be as ____ as the reciprocal of the reserve ratio but is usually ____.

Question

Quizplus · Accepted Answer

The money multiplier is the reciprocal of the reserve ratio, which means that the larger the reserve ratio, the smaller the money multiplier, and vice versa. Therefore, the money multiplier can be as high as the reciprocal of the reserve ratio, but it is usually lower. Choice A correctly reflects this relationship.

The Money Multiplier Can Be as ____ as the Reciprocal