Assuming no cash leakages and no excess reserves held by banks,a required reserve ratio of 0 percent would mean that the simple deposit multiplier is

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The simple deposit multiplier is calculated as 1/required reserve ratio. If the required reserve ratio is 0 percent (or 0), the formula becomes 1/0, which theoretically leads to an infinite multiplier. This means banks could lend out an unlimited amount of money based on any amount of deposits, assuming no cash leakages and no excess reserves held by banks.

Assuming No Cash Leakages and No Excess Reserves Held by Banks,a