Is credit multiplier and money multiplier same ? If not what are the differences between them?
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The terms "deposit multiplier" and "money multiplier" are often confused and used interchangeably because they are very closely related concepts and the distinction between them can be difficult to grasp. The deposit multiplier provides the basis for the money multiplier, but the money multiplier value is ultimately less, due to excess reserves, savings, and conversions to cash by consumers.
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