Calculate the naive multiplier

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Reference no: EM13819116

Consider an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16.

Calculate the "naive" multiplier. We will use this information again in the next question.

Reference no: EM13819116

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Calculate the naive multiplier : Consider an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16. Calculate the "naive" multiplier. We will use..

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