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lina2011 [118]
3 years ago
15

If the Federal Resene sets the reserve rate to 20%, what is the resulting money multiplier?​

Mathematics
2 answers:
Temka [501]3 years ago
8 0
The answer is 5
——————-
malfutka [58]3 years ago
5 0

Answer:

5

Step-by-step explanation:

Money multiplier helps to explain how an economic activity boosts the economic output for the country. It shows how saving in terms of deposit increases the net supply of money in any economy.

Money multiplier = 1/reserve ratio

given reserve ratio = 20% = 20/100 = 0.2

thus,

Money multiplier = 1/0.2 = 5

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Answer:

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Step-by-step explanation:

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Meaning, that the area has decreased

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Answer:

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Step-by-step explanation:

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Step-by-step explanation:

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