Question

Which of the following determines money
supply?
High powered money
Money multiplier

Community's choice
All of the above
​

Answer 1

Explanation:

What are the determinants of money multiplier?

The size of the money multiplier is determined by the currency ratio (Cr) of the public, the required reserve ratio (RRr) at the central bank, and the excess reserve ratio (ERr) of commercial banks. The lower these ratios are, the larger the money multiplier is.

Answer 2

Answer:

.The size of the money multiplier is determined by the currency ratio (Cr) of the public, the required reserve ratio (RRr) at the central bank, and the excess reserve ratio (ERr) of commercial banks. The lower these ratios are, the larger the money multiplier is.