Question 1 of 10 Let r= .05 be the reserve rate. Which of the following is the money multiplier? 1 A. 0.052 1 B. O C. 10.0.05 D. 0.052

MDC asked Mar 1, 2023

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MDC asked Mar 1, 2023

by MDC

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6 votes

Given reserve rate is

Then, the money multiplier is

$\begin{gathered} \text{Money Multiplier=}(1)/(r) \\ =(1)/(0.05) \end{gathered}$

Hence, the money multiplier is

AB Bolim answered Mar 7, 2023

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