During the 1990s, the money multipliers for M1 and M2:

Question

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During the 1990s, the money multipliers for both M1 and M2 decreased. This means that the money supply grew at a slower rate than the growth of the monetary base (which includes things like currency, reserves, and other central bank liabilities). This could be due to factors such as increased reserve requirements, changes in banking practices, or other regulatory changes that impacted the ability of banks to create new money through lending.

During the 1990s, the Money Multipliers for M1 and M2