Assuming 100% reserve, what would the Money multiplier be for M0,1, 2, 3?
1 ?
With 100% reserve, there are no distinctions between measures of the money supply. There is only one measure, hence M0=M3.
Assuming 100% reserve, what would the Money multiplier be for M0,1, 2, 3?
1 ?
With 100% reserve, there are no distinctions between measures of the money supply. There is only one measure, hence M0=M3.