Economy, asked by anshtyagi1504, 7 hours ago

Explain the working of money multiplier with the help of numerical example.​

Answers

Answered by MansiPoria
2

Answer:

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.

Similar questions