The money multiplier is the extent to which the money supply is a multiple of the monetary base.

Name: The money multiplier is the extent to which the money supply is a multiple of the monetary base.
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The money multiplier reflects how an initial deposit can lead to a larger increase in the total money supply. It shows the ratio of the amount of money that banks generate with the amount of reserves they have.

The Money Multiplier Is the Extent to Which the Money