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© 2000-2003
Douglas A. Ruby


Macroeconomic Theory
The Money Multiplier
1) You may adjust the value for the Initial Change in Reserves (change in base money),
Reserve-Demand Deposit Ratio (R/DD), or Currency-Demand Deposit Ratio (C/DD) by clicking on the boldfaced numbers in the appropriate number box. Just click on any of these three numbers and enter a new value.
2) Note the following:
  • $-50,000.00 < Initial Amount < $50,000.00,
  • 0.010 < R/DD < 1.00
  • 0.010 < C/DD < 1.00
3) Press the Money Creation button to display the process.
4) Press Reset to start over.