Steven Manley deposits $1,000,000 into his checking account at his neighborhood bank (chump change for him). every one of the following. M1 stays the same. M2 remains unchanged.
One would anticipate a money multiplier of 1/0.05, or 20, with a reserve ratio of 5%. Since you can lend out $20 million if you have $1 million in deposits and a 5% reserve ratio, a money multiplier of 20 is to be expected.
The percentage of workers in the labor force who do not currently have a job but are actively seeking one is measured by the unemployment rate. This statistic excludes people who have not sought for job in the last four weeks.
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