(Answered) Suppose that the deposit multiplier in a particular economy

Economics

Suppose that the deposit multiplier in a particular economy is 5. In this simple economy, banks hold no excess reserves and the public uses checking deposits rather than holding currency.

What is the required reserve ratio in this economy?

A. 0.25

B. 25

C. 10

D. 50

E. 0.20

F. 5

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Macroeconomics, Economics

Category:- Macroeconomics
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