Discuss-Money Multiplier Mechanism
Discuss-Money Multiplier Mechanism. The money multiplier is defined as the highest limit to which any alterations would impact money supply in money deposits transacted in an economy. This paper entails:
- The money formula
- Application of money multiplier
- Factors affecting money multiplier
- Money multiplier in explaining the financial crisis of 2007/2008 in UK and USA
- Role of monetary authorities in influencing money supply
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