A change in the discount rate changes the size of the money multiplier.
The money multiplier is determined by the required reserve ratio,not the discount rate.

Question

Quizplus · Accepted Answer

The size of the money multiplier is affected by both the required reserve ratio and the discount rate. When the discount rate increases, banks are less likely to borrow from the Federal Reserve, reducing the amount of reserves in the banking system and decreasing the money multiplier. Conversely, when the discount rate decreases, banks are more likely to borrow, increasing the amount of reserves and expanding the money multiplier.

A Change in the Discount Rate Changes the Size of the Money