The simple money multiplier
A) equals the reciprocal of the required reserve ratio
B) assumes banks hold excess reserves
C) is larger as the required reserve ratio increases
D) equals required reserves plus excess reserves
E) equals total reserves minus required reserves
Correct Answer:
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Q61: If the required reserve ratio is 0.2,and
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Q125: When the Fed buys U.S.government securities from
Q139: Exhibit 14-2 Q141: The simple money multiplier is defined as Q142: If r is the required reserve ratio,which Q143: Suppose the required reserve ratio is 0.2 Q145: The simple money multiplier equals Q146: When the Fed buys U.S.government securities from Q147: If the required reserve ratio is 10
Exhibit 14-2
A)the
A)1 divided by
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