APFIVE Realistic Money Multiplier Formula
Which of the following expressions most accurately represents the money multiplier when accounting for required reserves, excess reserves, and public currency holdings?
A
$$\dfrac{1-rr}{rr}$$
B
$$\dfrac{1}{rr}$$
C
$$\dfrac{1}{rr-er}$$
D
$$\dfrac{1 + c}{rr + er + c}$$
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