According to the simple deposit multiplier, what happens if there is a deposit and the required reserve

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According to the simple deposit multiplier, what happens if there is a deposit and the required reserve ratio is zero?

a. The money supply grows forever.

b. The money supply equals zero.

c. The growth rate of the money supply is zero.

d. The economy will collapse.

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Money, Banking, Financial Markets and Institutions

ISBN: 978-0538748575

1st edition

Authors: Michael Brandl

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Question Posted: Jun 21, 2019 07:24 AM

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According to the simple deposit multiplier, what happens if there is a deposit and the required reserve

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Money, Banking, Financial Markets and Institutions

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