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How much is the money multiplier

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Reference no: EM132515951

Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.10.

a. How much is the money multiplier?

b. How much is the money multiplier with a rise of 0.08 in the currency-to-deposit ratio?

c. How much is the money multiplier with a rise of 0.08 in the excess reserve-to-deposit ratio?

Reference no: EM132515951

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