If r is the required reserve ratio,which of the following is the simple money multiplier?
A) r
B) 1/(1 - r)
C) 1 - r
D) 1/r
E) r2
Correct Answer:
Verified
Q125: When the Fed buys U.S.government securities from
Q132: If a bank borrows $1,000 from the
Q138: Suppose you bank at Bank A and
Q139: Exhibit 14-2 Q141: The simple money multiplier is defined as Q143: Suppose the required reserve ratio is 0.2 Q144: The simple money multiplier 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)equals the reciprocal of
A)1 divided by
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