Question

explain the concept of money multiplier​

Answer 1

The Money Multiplier refers to how an initial deposit can lead to a bigger final increase in the total money supply. For example, if the commercial banks gain deposits of £1 million and this leads to a final money supply of £10 million. The money multiplier is 10.

Answer 2

Answer:

THE MONEY MULTIPILER REFERS TO HOW AN DESPITE CAN LEAD TO A BIGGER FINAL INCREASE IN THE TOTAL MONEY SUPPLY.