In Canada
A)the M1 multiplier is less than the M2 multiplier.
B)the money multiplier increases when the desired reserve ratio increases.
C)the money multiplier increases when the currency drain ratio increases.
D)the M1 multiplier decreases over time.
E)the M2 multiplier decreases over time.

Question

Quizplus · Accepted Answer

The M1 multiplier is typically less than the M2 multiplier because M2 includes more components (like savings deposits) than M1, leading to a larger multiplier effect.