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Explain why the money multiplier differs from the simple

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If the reserve requirement(rr)is 0.2, what is the simple deposit multiplier? if, in addition, the currency deposit ratio(c) is 0.05 and the excess reserve ratio(e) is 0.15, what is the money multiplier?Explain why the money multiplier differs from the simple deposit multiplier.

Reference no: EM13326855

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