Question

I need help!! please!

The money multiplier formula shown the effect of...

a - a cash deposit into the banking system on the money supply
b - low interest rates on creditors over a long period.
c - Federal Reserve discount rate reductions on the bond markets.
d - a required reserve ratio on excess reserves.

Answer 1

a- the mone multiplier formular shows the effect of a cash deposit into the banking system on the mone supply

Answer 2

remember the multiplier is the one that shows us whether are we lending more money or saving more money

usually this is how the multiplier looks like m=1/1-r

Answer 3

where r is the required reserve ratio

Answer 4

Oh thanks!! i had already gotten the answer, but forgot to close this question. you made it easy to understand though, thanks a lot!:)

Answer 5

thank you its the pleasure