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What is credit multiplier?

Updated: 8/22/2023
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9y ago

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A multiplier which deals with financial matters 1/1-mpc

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15y ago
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9y ago

A credit multiplier measures the extent to which money can be created or lent in the banking system. Banks lend money up to a set limit so the monetary base is not exceeded.

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Q: What is credit multiplier?
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