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Digiron [165]
3 years ago
5

Suppose that the required reserve ratio is 8.00 %. What is the simple money (deposit) multiplier?

Business
1 answer:
77julia77 [94]3 years ago
8 0

Answer:

12.5

Explanation:

Money multiplier gives the maximum amount money supply can increase to given the reserve ratio

Money multiplier = 1 / r = 1 / 0.08 = 12.5

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Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar they earn and save the remainin
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Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

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= 4

2). Decrease in government purchases will lead to a decrease in income, generating an initial change in consumption

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= $140.6 billion

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= $1,000 billion

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As we can see that the income falls by $1000 billion in the end, so AD shifts to the left by the size of $1 trillion

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A recent study found that the death rate for people who sleep 6 to 7 hours per night is lower than the death rate for people who
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Type of employment, indicator for chronic illness, drug, or alcohol use these variables are likely useful to add to the regression to control for important omitted variables.

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