Multiple Choice
The oversimplified money multiplier formula, when the required reserve ratio is m, is
A) change in money supply = change in reserves × m.
B) change in money supply = (1 / m) / change in reserves.
C) change in money supply = (1 / m) × change in reserves.
D) change in money supply = m / change in reserves.
Correct Answer:
Verified
Correct Answer:
Verified
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