Which of the following is true regarding the money multiplier?
A) It is larger,if the target reserve ratio is smaller.
B) It will be zero when the target reserve ratio is 100 percent.
C) It is the reciprocal of the bank's excess reserves.
D) It is the reciprocal of the bank's actual reserves.
E) It is larger,if the target reserve ratio is larger.
Correct Answer:
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