The money multiplier is more complicated than the simple money multiplier because it takes into account which of the following?

Question

Quizplus · Accepted Answer

The money multiplier is affected by excess reserves, currency drain (when people hold onto cash instead of depositing it in banks), and the public's desire to hold currency. Therefore, all of the above options are correct when it comes to the more complicated money multiplier.

The Money Multiplier Is More Complicated Than the Simple Money