China lowers reserve requirements The People's Bank of China lowered the required reserve ratio from 13.5 percent to 13 percent but it remained much higher than in other countries. Source: Bloom If the currency drain ratio in China is 10 percent of deposits and the desired reserve ratio equals the required reserve ratio, calculate the money multiplier in China and compare it with the U.S. money multiplier. Assume that the required reserve ratio in the United States is 10 percent, the required reserve ratio in China is 13 percent, and the currency drain ratio in both countries is 10 percent of deposits. The money multiplier in China is. >>> Answer to 1 decimal place.

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