Simple deposit multiplier and the money multiplier

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Reference no: EM131303114

1. What are the key differences between the simple deposit multiplier and the money multiplier?

2. Briefly explain whether the money multiplier will increase or decrease following an increase in each of the following:

a. The currency-to-deposit ratio (C/D)

b. The excess reserves-to-deposit ratio (ER/D)

c. The required reserve ratio, (rrD).

Reference no: EM131303114

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