Suppose banks desire a ratio of reserves to deposits, r, of 4%. And suppose the public desire a ratio of cash to deposits, d, of 2%. Which of the following is correct? 1. The bank deposit multiplier is 25. 2. The money multiplier is 17. O a) Both 1 and 2. A b) 1 only. O) 2 only. o d) Neither 1 nor 2.

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