Question

The actual money multiplier is: a) usually smaller than the potential money multiplier. b) always equal...

The actual money multiplier is:

a)

usually smaller than the potential money multiplier.

b)

always equal to the potential money multiplier.

c)

usually larger than the potential money multiplier.

d)

usually equal to the potential money multiplier.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

ANswer
usually smaller than the potential money multiplier.
the actual multiplier considers the cash drop by public, firms and the actual reserve ratio
the potential money multiplier assumes there is no money drain and all the money with banks.

Add a comment
Know the answer?
Add Answer to:
The actual money multiplier is: a) usually smaller than the potential money multiplier. b) always equal...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT