Respuesta :
Answer:
Currently the U.S. is on a downwards spiral and will fall soon.
Step-by-step explanation:
The resulting money multiplier is 8
What is a money multiplier?
The money multiplier represents the greatest amount the supply of money increase on the bases of an increase in reserves within the banking system.
How to find the resulting money multiplier ?
- The given rate is 12.5%
So, rate = 12.5/100 = 0.125
- The resulting money multiplier (M) = 1/r
∴ (M) = 1/0.125 = 8
The resulting money multiplier is 8
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