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Business, 09.11.2019 04:31 julio003620

In 2008, the required reserve ratio for a bank's first $9.3 million in checking account deposits was zero. it was 3 percent on deposits between $9.3 million and $43.9 million, and 10 percent on deposits above $43.9 million. in most cases, and for simplicity, we assume that the required reserve ratio is 10 percent on all deposits. therefore, the simple deposit multiplier is 10. is the real-world deposit multiplier greater than, less than, or equal to the simple deposit multiplier?

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