What is the money multiplier in the economy
Problem
The people in an economy have $272 million in money. There is only one bank that all the people deposit their money in and it holds 12% of the deposits as reserves. What is the money multiplier in this economy?
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There is only one bank that all the people deposit their money in and it holds 12% of the deposits as reserves. What is the money multiplier in this economy?
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