What is the money multiplier in this economy

Reference no: EM133597385

Assignment:

The people in an economy have $225 million in money. There is only one bank that all the people deposit their money in and it holds 20% of the deposits as reserves. What is the money multiplier in this economy?

Please calculate the answer to one decimal.

Reference no: EM133597385

Questions Cloud

What trade theories work best for usa in regard to trade : What trade theories work best for the USA in regard to improving their trade profile?

What is the most fundamentally urgent issue in our world : What is the most fundamentally urgent issue in our world and why do you feel this way? Write a paragraph explaining your argument.

Examples of such government expenditures : Can you provide some examples of such government expenditures and explain why they are considered essential for the economy?

Explain the swot selection in a discussion : Explain the SWOT selection in a discussion (not in the table) and how they relate to the VMO and organization strategy

What is the money multiplier in this economy : There is only one bank that all the people deposit their money in and it holds 20% of the deposits as reserves. What is the money multiplier in this economy?

Describe the needs identified by abraham maslow : Describe the needs identified by Abraham Maslow that each ad addresses. What consumer segment is being targeted?

Find out how customers shop before they arrive at a decision : find out how customers shop before they arrive at a decision. Analyse the business challenge and recommend suitable analytical solution(s) for the same.

Describe what your role as the change agent would be : As the leader, who has been charged with implementing this change, describe what your role as the change agent would be and the process that you would use

What is a good metric to put in place : What is a good metric to put in place to determine if a particular retail location is doing as well as expected?

User Account

All Pages