If the rr is equal to 25%, what is the value of the money multiplier (simple deposit multiplier)? if $35,000 in cash is taken fr
1 answer:
The money supply in the economy is $1025302.6
Bank loans or invests its excess reserves to earn greater hobby. A one-dollar boom inside the financial base reasons the money deliver to boom through more than one dollar. The growth inside the money supply is the cash multiplier.
The money multiplier is the primary can used to calculate what a change in reserves could do to the money supply. The method for the cash multiplier is 1/r where r is the reserve ratio. once one has calculated the money multiplier, they might then multiply that through the exchange in reserves.
The money multiplier is critical in macroeconomics because it determines the cash supply, which affects interest charges. it is also critical in banking because it impacts economic coverage and the steadiness of the banking region.
Learn more about the money multiplier here brainly.com/question/14182201
#SPJ4
You might be interested in
of
is
Solution:
Given of what number is
.
Let us first convert the mixed fraction into improper fraction.
Now, let us take the unknown number be x.
Do the cross multiplication.
Now, again change the improper fraction into mixed fraction.
Hence of
is
.