Use the simple deposit multiplier to help show why the money supply increases when the Fed lowers the required reserve ratio (r)
The used to determine the simple deposit multiplier is: 1/r. As the required reserve ratio is reduced, the simple deposit multiplier would rise.
Economics
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A surplus in a labor market exerts an upward pressure on the equilibrium wage rate
a. True b. False Indicate whether the statement is true or false
Economics
Which of the following is not an important source of revenue for the federal government?
A. Corporate income taxes. B. Property taxes. C. Payroll taxes. D. Personal income taxes.
Economics