The money multiplier determines how much

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The money multiplier determines how much the quantity of money will be expanded given a change in the monetary base. This is calculated as the ratio of the change in the quantity of money to the change in the monetary base. As banks create money by making loans, an increase in the monetary base (such as through open market operations by the central bank) can lead to a larger increase in the quantity of money in circulation through the money multiplier effect.

The Money Multiplier Determines How Much