Multiple Choice
Table 16-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below.
-Refer to Table 16-2. If all banks in the economy have the same reserve ratio as this bank, then the value of the economy's money multiplier is
A) 1.33.
B) 10.00.
C) 10.81.
D) 13.33.
Correct Answer:

Verified
Correct Answer:
Verified
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