Question

the value of money multiplier is equal to _________ ?​

Answer 1

Answer:

Money multiplier = 1 / R, where R is the reserve ratio

What is the new money multiplier? A money multiplier of 20 means that the bank has 20 times as much in deposits as it does in reserves. Each dollar of reserves will theoretically generate $20 of money.

Answer 2

Answer:

Money multiplier = 1 / R, where R is the reserve ratio

What is the new money multiplier?

A money multiplier of 20 means that the bank has 20 times as much in deposits as it does in reserves. Each dollar of reserves will theoretically generate $20 of money.

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