The simple money multiplier equals
A) 1 divided by the dollar amount of required reserves
B) the dollar amount of total reserves divided by the dollar amount of excess reserves
C) the dollar amount of excess reserves divided by the dollar amount of total reserves
D) 1 divided by the percentage of deposits that must be held by a bank in the form of reserves
E) 1 divided by the percentage of deposits that can be lent out by a bank
Correct Answer:
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