The deposit multiplier is given by the formula
A) change in checkable deposits ÷ change in required reserves.
B) change in checkable deposits ÷ change in reserves.
C) change in excess reserves ÷ change in checkable deposits.
D) change in legal reserves ÷ change in excess reserves.
Ans: B) change in checkable deposits ÷ change in reserves.
Economics
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Economics