If required reserves are expressed by RR; the required reserve rate by rD and deposits by D, the simple deposit expansion multiplier is expressed as:
A. rDD
B. (1/rD ) D
C. rD
D. 1/rD
Answer:D
If required reserves are expressed by RR; the required reserve rate by rD and deposits by D, the simple deposit expansion multiplier is expressed as:
A. rDD B. (1/rD ) D C. rD D. 1/rD