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Business, 08.04.2021 18:40 hellokitty1647

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? A. Greater. Inflation plays a large role in the increase in checkable deposits. B. Equal. There is no difference between the two. C. Less. The simple deposit multiplier is a model with assumptions that keep it higher than the​ real-world multiplier. D. None of the above. They are very different concepts.

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