(Table) Consider the T-account in the table. If the reserve requirement is 20%, then the
A) potential money multiplier and the actual money multiplier are the same.
B) potential money multiplier is larger than the actual money multiplier.
C) potential money multiplier is smaller than the actual money multiplier.
D) actual money multiplier is zero.

Question

(Table) Consider the T-account in the table. If the reserve requirement is 20%, then the 
A) potential money multiplier and the actual money multiplier are the same. 
B) potential money multiplier is larger than the actual money multiplier. 
C) potential money multiplier is smaller than the actual money multiplier. 
D) actual money multiplier is zero.

Quizplus · Accepted Answer

The Answer of (Table) Consider the T-account in the table. If the reserve requirement is 20%, then the 
A) potential money multiplier and the actual money multiplier are the same. 
B) potential money multiplier is larger than the actual money multiplier. 
C) potential money multiplier is smaller than the actual money multiplier. 
D) actual money multiplier is zero.

(Table) Consider the T-Account in the Table