The formula is Deposit Multiplier = 1 / Reserve Ratio ... which makes the money multiplier a better measure of economic impact; at least a more realistic one. Article Sources Investopedia requires ...
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Deposit Multiplier vs. Money Multiplier: What's the Difference?The formula is Deposit Multiplier = 1 / Reserve Ratio ... which makes the money multiplier a better measure of economic impact; at least a more realistic one.
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