Benzodiazepines are used for treating: 1  anxiety and panic. 2  seizures (convulsions), and. 3  insomnia or trouble sleeping.
Calculating the Money Multiplier. To figure the simple money multiplier, you divide 1 by the required reserve ratio. For example, if the required reserve ratio is 3 percent, divide 1 by 0.03 to find the simple money multiplier equals 33.3.he simple money multiplier estimates the money supply relative to the amount of currency actually issued based on the reserve ratio.
That means that an increase of net exports of $100 million leads to an increase in real GDP of $1 billion. Again, this is the multiplier effect at work in the economy. When you think about it, the MPC and the MPS are the key to this formula. When they change, the multiplier effect changes. Since the simple spending multiplier is based on the marginal propensity to consume, any increase in the MPC will increase the value of the multiplier. Likewise, any decrease in the MPS will increase the value of the multiplier.