The _____ is the amount by which an initial bank deposit will expand the money supply.
A)money multiplier
B)money inflator
C)money magnifier
D)credit inflator

Question

Quizplus · Accepted Answer

The money multiplier describes how an initial deposit can lead to a larger increase in the total money supply. It is based on the reserve requirement set by the central bank, which determines how much banks can lend out of their deposits.

The _____ Is the Amount by Which an Initial Bank