A change in the monetary base leads to a larger change in the money supply since

Name: A change in the monetary base leads to a larger change in the money supply since
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Banks lend out their excess reserves, which then become deposits in other banks. This process is repeated multiple times, leading to a multiplier effect where the total change in the money supply is a multiple of the initial change in the monetary base. This is known as the money multiplier effect.

A Change in the Monetary Base Leads to a Larger