Question
If the currency-deposit ratio equals 0.5 and the
reserve-deposit ratio equals 0.1, then the money multiplier isSolution
If the currency-deposit ratio equals 0.5 and the reserve-deposit ratio equals 0.1, then the money multiplier is given by (1+k) / (r+k) = 1.5/0.6 = 2.5
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Statement-1: The trend analysis of ratios indicates whether the ...
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