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The simple deposit multiplier is a- the ratio of the amount of deposits created by banks to the amount of new reserves. b- the percentage
The simple deposit multiplier is
a- the ratio of the amount of deposits created by banks to the amount of new reserves.
b- the percentage of checkable deposits that the Fed specifies that banks must hold as reserves.
c- the ratio of the amount of new reserves to the amount of deposits created by banks.
d- the ratio of the amount of deposits created by banks to the amount of already existing reserves.
which one would it be?
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