Answer:
Currently the U.S. is on a downwards spiral and will fall soon.
Step-by-step explanation:
The resulting money multiplier is 8
The money multiplier represents the greatest amount the supply of money increase on the bases of an increase in reserves within the banking system.
So, rate = 12.5/100 = 0.125
∴ (M) = 1/0.125 = 8
The resulting money multiplier is 8
Find more about "Money multiplier" here: https://brainly.com/question/13988758
#SPJ2