Explain required reserve ratio and money multiplier
Required reserve ratio and money multiplier.
If banks do not loan out all their excess reserves then the real world multiplier is
1.larger than 1/RR.
2.Smaller than 1/RR.
3.equal to 1/RR.
4.not related to 1/RR.
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Explain required reserve ratio and money multiplier. If banks do not loan out all their excess reserves after the real world multiplier.
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