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Suppose the currency-to-deposit ratio is 0.2 , the excess reserve-to-deposit ratio is 0.04 , and the required reserve ratio is 0.1 . Which will have

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Suppose the currency-to-deposit ratio is 0.2 , the excess reserve-to-deposit ratio is 0.04 , and the required reserve ratio is 0.1 . Which will have a larger impact on the money multiplier a rise of 0.05 in the currency ratio or in the excess reserve ratio? Instructions: Enter your response rounded to two decimal places. Initially, the money multiplier is m= If the currency-to-deposit ratio rises to 0.25 , the multiplier wil be m= If, instead, the excess reserve-to-deposit ratio rises by 0.05 , the money multiplier will be m= So, multiplier falls by more with the increase in the

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