If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR equals required reserves, and ER = excess reserves, then m would equal:
A. R/ER
B. M/MB
C. C + D
D. None of the above.
Answer:B
If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR equals required reserves, and ER = excess reserves, then m would equal:
A. R/ER B. M/MB C. C + D D. None of the above.