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Calculate the money multiplier when the desired reserve ratio is 10 percent and the currency drain ratio is 20 percent of deposits. Calculate the money

  • Calculate the money multiplier when the desired reserve ratio is 10 percent and the currency drain ratio is 20 percent of deposits.
  • Calculate the money multiplier when the desired reserve ratio is 10 percent and the currency drain ratio is 60 percent of deposits.
  • As the currency drain ratio increases, what happens to the magnitude of the money multiplier?

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