An increase in the monetary base that goes into ________ is not multiplied,while an increase that goes into ________ is multiplied.

Question

Quizplus · Accepted Answer

An increase in the monetary base that goes into currency is not multiplied because it is held outside the banking system, whereas an increase that goes into deposits is multiplied through the banking system's ability to create loans and deposits.

An Increase in the Monetary Base That Goes into ________