The Money Multiplier: Group of answer choices

Demonstrates the estimate of the money created from initial deposits based on the reserve requirements as determined by the central bank.

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Differs from the deposit multiplier in that the money multiplier accounts for the marginal propensity to consume while the deposits multiplier does not.

Demonstrates the relation between initial deposits into the monetary system and the eventual amount of money created in the system from the initial injection.

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ANSWER A Demonstrates the estimate of the money created from initial deposits based on the reserve r... View the full answer