The real-world money multiplier is greater than the simple money multiplier (1/RR).

Name: The real-world money multiplier is greater than the simple money multiplier (1/RR).
Brand: Quizplus
Rating: 5.0 (53 reviews)

Question

Quizplus · Accepted Answer

The real-world money multiplier is typically less than the simple money multiplier (1/RR) because it takes into account factors like people holding onto cash and banks holding excess reserves, both of which reduce the multiplier effect compared to the theoretical model.

The Real-World Money Multiplier Is Greater Than the Simple Money