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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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