The sharp drop in the money multiplier between 2008 and 2009 enhanced the Fed's ability to fight the recession.

Name: The sharp drop in the money multiplier between 2008 and 2009 enhanced the Fed's ability to fight the recession.
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The sharp drop in the money multiplier actually made it more difficult for the Fed to fight the recession, as it indicated that banks were holding onto reserves instead of lending them out, which reduced the effectiveness of monetary policy in stimulating the economy.

The Sharp Drop in the Money Multiplier Between 2008 and 2009