The deposit multiplier is inversely related to the reserve requirement.

Name: The deposit multiplier is inversely related to the reserve requirement.
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The deposit multiplier, which indicates the maximum amount banks can lend out from the deposits they receive, increases as the reserve requirement decreases, and vice versa. This is because a lower reserve requirement allows banks to hold a smaller fraction of deposits as reserves, thereby enabling them to lend out a greater portion of their deposits.

The Deposit Multiplier Is Inversely Related to the Reserve Requirement