The money multiplier is the reciprocal of the reserve
requirement, which can only be a finite number.
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The money multiplier formula is the amount of new money that will be created with each demand deposit, calculated as 1 ÷ RRR.
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Money Multiplier is inverse of Reserve Requirement. That is, m =
1/R
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A multiplier which deals with financial matters 1/1-mpc
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The money multiplier is usually greater than 1 because as money
is changing hands, it ends up benefiting more users than it would
have if it was in a bank account.
Solo Savings Bank received an initial deposit of 6000 It kept a percentage of this money in reserve based on the reserve rate and loaned out the rest The amount it loaned out was eventually all dep