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Loraine Loraine
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9 years ago
Explain how the currency drain ratio affects the size of the money multiplier. In your explanation, suppose that in one round of the money creation process a bank gains $1 million in new deposits and reserves. Further suppose that the desired reserve ratio is 10 percent and the currency drain ratio is 50 percent.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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9 years ago
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Loraine Author
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9 years ago
Good timing, thanks!
Tim0301
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Yesterday
Smart ... Thanks!
oscar520000
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2 hours ago
Thanks
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