Re: Solve this plz

Posted by akanksha on Jun 10, 2014; 12:43pm
URL: http://discussion-forum.276.s1.nabble.com/Solve-this-plz-tp7592236p7592244.html

in this q,
 C=0.25x, D=0.75x, and R/D=0.20, also C/D=0.25/0.75, now money multiplier=(C/D+1)/(C/D+R/D)=[(0.25/0.75)+1)/(0.25/0.75)+0.20)]=0.25...so increase in money supply=2000*2.5=5000 units.