Let t be the level of travelers checks so td is the ratio


In the text, we ignored traveler's checks in deriving the money multiplier. Suppose we are more careful and include traveler's checks in the money supply. Let T be the level of traveler's checks, so T/D is the ratio of traveler's checks to checking deposits. Derive the money multiplier in terms of C/D, R/D, and T/D.

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Financial Management: Let t be the level of travelers checks so td is the ratio
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