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At first this question sounds nearly meaningless, but I have a hunch of what you
may be talking about. It's just a hunch:
I think you live in the USA, and you've noticed that when you Want to convert
some of your dollars into Another Country's money, you almost always multiply
your dollars by a number greater than ' 1 ' to find out how much of the other
country's money you can get for them.
The answer to that one is simple: There are very few countries ... not many, but
there are some ... where the basic unit of their currency is worth 1 US dollar or
more. Putting it another way, 1 US dollar will buy more than one unit of currency
in most other countries.
Everything is relative. Like, if that wasn't your question, then my answer to it is
equally meaningless.
Wiki User
∙ 10y ago
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Can a government spending multiplier be a value of less than 1?
Quite simply, no. The Spending multiplier, even on government spending, will always have a value of greater than one. It really is self-evident; for that money to be subjected to a multiplier, it must be circulating multiple times, therefore the first circulation (the initial spending) would result in a multiplier of one, and subsequent spends would increase the multiplier further
Explain the derivative functions of money?
Explain the derivative functions of money?
If the currency drain ratio is 0.38 and desired reserve ratio is 0.002 what is the UK money multiplier?
3.612
Which is greater .40 or .70?
Which is more money- 40 cents or 70 cents- and that would apply to your question.
What is greater number .100 or .057?
.100 is greater than .057Think in the terms of money .100 one dollar / 057 pennies .100 is larger.
Why is the money multiplier greater than 1?
The money multiplier is usually greater than 1 because as money is changing hands, it ends up benefiting more users than it would have if it was in a bank account.
Why can't you have a money multiplier of inifinity?
The money multiplier is the reciprocal of the reserve requirement, which can only be a finite number.
Can a government spending multiplier be a value of less than 1?
Quite simply, no. The Spending multiplier, even on government spending, will always have a value of greater than one. It really is self-evident; for that money to be subjected to a multiplier, it must be circulating multiple times, therefore the first circulation (the initial spending) would result in a multiplier of one, and subsequent spends would increase the multiplier further
What is the money multiplier formula?
The money multiplier formula is the amount of new money that will be created with each demand deposit, calculated as 1 ÷ RRR.
What is the relationship between the monetary multiplier and reserve ratios?
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
What is credit multiplier?
A multiplier which deals with financial matters 1/1-mpc
The money multiplier formula shows the effects of?
The money multiplier formula shows the effects of the Federal Reserve discount rate. It does not show a money supply or low interest rates on creditors over a period of time.
The money multiplier formula _____.?
determines the amount of new money that will be created with each demand deposit
The M2 money multiplier in the United States is currently about how much?
4
If the money multiplier is 4, what is the required reserve ratio (RRR)?
25 percent
What is the relationship between monetary base and the money multiplier?
The term monetary base is an economic term that can also be reserve money or base money. It is simply the amount of money in circulation. It is monitored by the central bank of government by buying and selling bonds. A money multiplier is the deposits that increase through the banksÕ loan revenue.
What is the main idea of the multiplier effect?
The main idea of the multiplier effect is that an initial increase in spending or investment leads to further economic activity and growth. This occurs as the money circulates through the economy, creating a ripple effect as it is spent and respent by individuals and businesses.
