If c = .35, r D = .10, and e = .10, what is the money multiplier? If a depository institution’s excess reserves increase by $400, how much can it safely lend? Ceteris paribus, how much money will the...


If c = .35, rD
= .10, and e = .10, what is the money multiplier? If a depository institution’s excess reserves increase by $400, how much can it safely lend? Ceteris paribus, how much money will the banking system create?


If rD
= .25, what is the simple money multiplier? If reserves increase by $100, how much do deposits increase?



May 26, 2022
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