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7. The deposit multiplier probably seems pretty similar to the spending multiplier, but they are not the same. a) What factors/parameters in our model would
7. The deposit multiplier probably seems pretty similar to the spending multiplier, but they are not the same. a) What factors/parameters in our model would produce a big spending multiplier? b) What factors/parameters would produce a big deposit multiplier? c) Provide an example of how the deposit multiplier in an economy could be big while the spending multiplier was small. 7. The deposit multiplier probably seems pretty similar to the spending multiplier, but they are not the same. a) What factors/parameters in our model would produce a big spending multiplier? b) What factors/parameters would produce a big deposit multiplier? c) Provide an example of how the deposit multiplier in an economy could be big while the spending multiplier was small
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