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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.

What does the money multiplier cost at a 5 percent mandated reserve ratio?

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.

Which of the following factors in the unemployment rate is not considered?

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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