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Suppose the currency-to-deposit ratio is 0.3 , 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 0.3 , 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 fises to 035 , the multiplier will be m= If, Instead, the excess reserve-to-deposit ratio rises by 0.05 , the money multiplier will be m= So. muttiplier folls by more with the increase in the

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