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White raven [17]
3 years ago
10

If the required reserve ratio is 20 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent

of any newly acquired checkable deposits, then the effective monetary multiplier for the banking system will be:
Business
1 answer:
Fofino [41]3 years ago
5 0
The effective monetary multiplier that will be used in the banking system given the data provided would be 4. A money multiplier is defined as the output of the reserve dollars the bank produces. To find the multiplier, just take into consideration the amount of deposit and the reserve ratio.
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tresset_1 [31]

Answer:

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fenix001 [56]

We would expect that the rebuilding at the end of World War II in many European countries increased aggregate demand for capital goods in <u>a. Both the US and Europe.</u>

<h3>What is aggregate demand?</h3>

Aggregate demand refers to the total demand for goods and services within an economy.

Because of the Marshall Plan initiated by the United States for rebuilding Europe after the Second World War, aggregate demand increased in both the United States and Europe.

<h3>Answer Options:</h3>

a. Both the US and Europe

b. The US, but not Europe

c. Europe, but not the US

d. Neither the US nor Europe

Thus, the rebuilding at the end of World War II in many European countries increased aggregate demand for capital goods in <u>a. Both the US and Europe.</u>

Learn more about aggregate demand at brainly.com/question/1490249

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3 years ago
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