2016/05/10

Q56, (B) AP Macro 真題 (Reserve Ratio/Multiplier)

Q56, (B) AP Macro 真題 (Reserve Ratio/Multiplier)

New Reserve / rr ratio is the maximum money created. But it the bank
hold some portion of its reserve (not loan out to create more money
supply) on its own will, then money creation multiplier will be less
effective. .