The reserve ratio is found using the following formula: Question 14 options: desired reserves/deposits excess reserves/deposits deposits/desired reserves total reserves/deposits excess reserves/desired reservesThe numerical value of the spending multiplier is smaller the: Question 11 options: larger the marginal propensity to consume larger the marginal propensity to withdraw greater the change in the price level that follows a spending change greater the change in the interest rate in the economy greater the change in government purchases in the economyThe multiplier effect means that: Question 6 options: a. consumption is typically several times larger than withdrawals b. an increase in consumption can result in a larger increase in government purchases c. an increase in spending can cause aggregate demand to change by a larger amount d. a small decline in MPC can cause aggregate demand to rise by several times that amount e. an increase in consumption leads to a larger increase in investment