Money multiplier

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Money multiplier. 1 connected concept: Money supply (related to).

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Community · Velocity of money

Summary

In monetary economics, the money multiplier is the ratio of the money supply to the monetary base.

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Connections1

the ratio relating the monetary base to the total money supply
The money multiplier represents the maximum amount of money that commercial banks can create with each unit of excess reserves, linking the base to the broader supply.
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Facts