What effect would a recession likely have on the size of the money multiplier?

Question

Quizplus · Accepted Answer

During a recession, the demand for loans typically decreases as individuals and businesses may be less willing to take on additional debt. This decrease in demand for loans would lead to a decrease in the size of the money multiplier. However, it is important to note that this effect may be offset by other factors such as changes in the reserve ratio or changes in the supply of money from the central bank. Therefore, the size of the money multiplier could still be influenced by a range of factors during a recession.

What Effect Would a Recession Likely Have on the Size