During the 2007-2009 recession, the money multiplier

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During a recession, the money multiplier typically falls because banks become more cautious and hold onto more of their deposits instead of lending them out. This leads to a decrease in the overall amount of money that is created through the fractional reserve banking system. If the money multiplier falls below 1, it means that the total amount of money in the economy is actually decreasing, which can exacerbate the economic downturn.

During the 2007-2009 Recession, the Money Multiplier