What is the money multiplier and what affects its size?
What will be an ideal response?
The money multiplier is the amount by which a change in the monetary base is multiplied to determine the change in the quantity of money. The money multiplier is greater than 1.0. Its size is affected by the desired reserve ratio and the currency drain. The higher the desired reserve ratio and/or the larger the currency drain, the smaller the money multiplier.
Economics
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Economics
The Keynesian theory implied the relationship between inflationary pressures and the level of unemployment; further research proved this relationship and it was coined the _________ curve.
a. Phillips b. Keynesian c. Say d. inflation
Economics