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Answer to Question #80435 in Macroeconomics for Tiyani Hlungwani
Question #80435
Calculate the money multiplier from the following information:
Currency drain ratio: 20% Reserve ratio: 10% Deposit: R60 000
Currency drain ratio: 20% Reserve ratio: 10% Deposit: R60 000
Expert's answer
The money multiplier from the following information is: m = 1/rr = 1/0.1 = 10.
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