Let r=.05 be the reserve rate. Which one of the following is the money multiplier? a. 10 * .05 b. 1/0.05^2 c. 0.05^2 d. 1/0.05

asked Nov 15, 2018 105k views

4 votes

Let r=.05 be the reserve rate. Which one of the following is the money multiplier?

a. 10 * .05
b. 1/0.05^2
c. 0.05^2
d. 1/0.05

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4 votes

The formula for the money multiplier is :
1/ Reserve rate
so, the answer would be :
1/0.05

Danny C answered Nov 15, 2018

8.2k points

3 votes

APEX!!!!!!!!!!!!!!!!!!!!!!!!!

1/0.05

Brandin answered Nov 21, 2018

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