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The money multiplier is the reciprocal of the reserve requirement, which can only be a finite number.

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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.

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