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If the currency drain ratio is 0.38 and desired reserve ratio is 0.002 what is the UK money multiplier?
3.612
Is pulley a speed multiplier or a force multiplier?
force
Which part of the multiplication sentence tells how many times a number is multiplied?
The multiplier. The multiplicand is multiplied by the multiplier to create the product.
What are the math terms for multiplication and is the multiplier is correct answer?
Multiplier x multiplicand = product
How do you find a multiplier?
For a change of p percent, the multiplier is (1+p/100).
What is the relationship between the monetary multiplier and reserve ratios?
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
What happens to the credit multiplier when the cash reserve ratio is increased?
The credit multiplier decreases.
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.
What does multiplier effect mean?
The multiplier effect describes how an increase in some economic activity starts a chain reaction that generates more activity than the original increase. The multiplier effect demonstrates the impact that reserve requirements set by the Federal Reserve have on the U.S. money supply.
If the money multiplier is 4, what is the required reserve ratio (RRR)?
25 percent
Formula for money multiplier?
it is the inverse of the reserve requirement. 1/rr. so if the required reserve is 10%, then MM would be 10.
If the Federal Reserve sets the reserve rate to 5 what is the resulting money multiplier?
100
If the federal reserve sets the reserve rate to 4 what is the resulting money multiplier?
it is 25 apex
If the currency drain ratio is 0.38 and desired reserve ratio is 0.002 what is the UK money multiplier?
3.612
If the federal reserve sets the reserve rate to 5.5 the resulting money multiplier is rounded to two decimal places?
20 wrong! its 50-apex 100 % sure:)
Why might the money supply not expand by the amount predicted by the deposit expansion multiplier?
The reserve requirement could change.
Which of the monetary policy tools can alter both the level of excess reserve and the money multiplier?
the federal funds rate
