Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.10. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserves ratio?
Initially, the money multiplier is m = _____.
If the currency-to-deposit ratio rises to 0.30, the multiplier falls to m = _____.
If, instead, the excess reserve-to-deposit ratio rises, the multiplier will be m = _______.