The value of the economy money multiplier

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An economy starts with $50,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $45,750. The T-account of the bank is shown below. Assets Liabilities Reserves $4,250 Deposits $50,000 Loans 45,750 1. Refer to Table 29-3. If all banks in the economy have the same reserve ratio as this bank, then the value of the economy’s money multiplier is

Reference no: EM131379128

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