In an economy, if the money multiplier equals 5.5, and the current- deposit ratio is 0.1, what is the value of reserve-deposit ratio?A.0.1B.0.04C.0.2D.0.15
Question
Solution 1
The money multiplier is calculated by the formula 1 / (Reserve-Deposit Ratio + Current-Deposit Ratio).
Given that the money multiplier is 5.5 and the current-deposit ratio is 0.1, we can substitute these values into the formula and solve for the reserve-deposit ratio.
5.5 = 1 / (Reserve-Deposit R Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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