The monetary multiplier and the spending multiplier are two ways of referring to the same concept.

Question

Quizplus · Accepted Answer

The monetary multiplier refers to the process by which an increase in bank reserves leads to a larger increase in the total money supply, while the spending multiplier (also known as the fiscal multiplier) refers to the effect of a change in fiscal policy (such as government spending or taxation) on the total economic output.

The Monetary Multiplier and the Spending Multiplier Are Two Ways