Question: The multiplier is equal to Multiple Choice 1 - Marginal propensity to save. Marginal propensity to save = Marginal propensity to consume. 1 = Marginal

The multiplier is equal to Multiple Choice 1 - Marginal propensity to save. Marginal propensity to save = Marginal propensity to consume. 1

The multiplier is equal to Multiple Choice 1 - Marginal propensity to save. Marginal propensity to save = Marginal propensity to consume. 1 = Marginal propensity to save. 1: Marginal propensity to consume. Suppose the banks in the Federal Reserve System have $400 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.05, then excess reserves will increase by Multiple Choice $1 million $20 million. $40 million. O O $2 billion

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