Circulation 69814

The economy's money is 600 PJ (monetary units). The proportion of cash is 5%. All cash is in circulation, and none is hoarded. The optimal reserve ratio is 12%. Calculate the money multiplier

Correct answer:

M =  8.7719

Step-by-step explanation:

A=600 PJ q=5%=1005=201=0.05  H=q A=0.05 600=30 PJ  r=12%=10012=253=0.12  M r (AH)=A M 0.12 (60030)=600  68.4M=600  M=68.4600=8.77192982  M=575008.77193=8.7719



Did you find an error or inaccuracy? Feel free to write us. Thank you!







Tips for related online calculators
Our percentage calculator will help you quickly and easily solve a variety of common percentage-related problems.
Do you have a linear equation or system of equations and are looking for its solution? Or do you have a quadratic equation?

You need to know the following knowledge to solve this word math problem:

Units of physical quantities:

Grade of the word problem:

Related math problems and questions: