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30-10-2022
Mathematics

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Question 1 of 10 Let r= .05 be the reserve rate. Which of the following is the money multiplier? 1 A. 0.052 1 B. O C. 10.0.05 D. 0.052

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RaneyI63005 RaneyI63005

30-10-2022

Given reserve rate is

[tex]r=0.05[/tex]

Then, the money multiplier is

[tex]\begin{gathered} \text{Money Multiplier=}\frac{1}{r} \\ =\frac{1}{0.05} \end{gathered}[/tex]

Hence, the money multiplier is

[tex]\frac{1}{0.05}[/tex]

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