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The initial money supply is 1,000, of which 500 is the currency held by the public. The desired reserve-deposit ratio (rr) is 0.2. What is
The initial money supply is 1,000, of which 500 is the currency held by the public. The desired reserve-deposit ratio (rr) is 0.2. What is the money multiplier in this economy?
The currency is___________
. The monetary base H is _____________
. The reserves are equal to ____________
. The deposits are equal to ____________
. The money multiplier is the factor______________
. The currency-deposit ratio (cr)_________________
the reserve-deposit ratio (rr) and is equal to_______________
. The money multiplier is equal to_____________
.
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