What is the money multiplier

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Assume a model where the currency ratio is 0.4 (c = 0.4), the excess reserve ratio is 0.2 (e = 0.2), and the required reserve ratio is 0.1(r = 0.1). What is the money multiplier? What change in the money supply results from an open market sale of $25,000?

Reference no: EM13976369

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