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Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.10. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserves ratio?Initially, the money multiplier is m = .If the currency-to-deposit ratio rises to 0.30, the multiplier falls to m = .If, instead, the excess reserve-to-deposit ratio rises, the multiplier will be m = .
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