definition of oversimplified multiplier??? This is all i can find and not sure i
ID: 1248693 • Letter: D
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definition of oversimplified multiplier??? This is all i can find and not sure if it applies: The expansion of the money supply that results from a FederalReserve System member banks ability to lend significantly in excessof it's reserves. Is there a formula that they use tolend money? definition of oversimplified multiplier??? This is all i can find and not sure if it applies: The expansion of the money supply that results from a FederalReserve System member banks ability to lend significantly in excessof it's reserves. Is there a formula that they use tolend money? Is there a formula that they use tolend money?Explanation / Answer
this is just a multiplier used to define: What Does MultiplierEffect Mean?The expansion of a country's money supply that results from banksbeing able to lend. The size of the multiplier effect depends onthe percentage of deposits that banks are required to hold asreserves. In other words, it is money used to create more money andis calculated by dividing total bank deposits by the reserverequirement.
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