The formula for the M1 money multiplier is

The formula for the M1 money multiplier is

The formula for the M1 money multiplier is





A) m = (1 + c)/(rr + e + c).
B) M = 1/(rr + e + c).
C) M = (1 + c)/(rr + e + c).
D) m = [1/(rr + e + c)] × MB.



Answer: A