What is the size of the money multiplier

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Reference no: EM131025304

Assume a fi nancial system has a monetary base (MB) of $25 million. The required reserves ratio is 10 percent, and no leakages are in the system.

a. What is the size of the money multiplier (m)?

b. What will be the system's money supply?

Reference no: EM131025304

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