If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
if each taxpayer paid the same lump-sum amount regardless of income level, the tax system would be: group of answer choices regressive. proportional. disproportionate. progressive.Franklin reviews financial data of a company to ensure accurate and complete information. Which job title does he most likely have?
Financial Manager
Accountant
Credit Analyst
Auditor
Explanation:
Answer:
Extrinsic value is the portion of the worth that has been assigned to an item by external factors.
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