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Money Multiplier

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PPGPortal > Home > Concept Dictionary > K, L, M > Money Multiplier

The Money Multiplier 

The measure of how much money the banking system generates due to the addition of one dollar to bank reserves.

(Peter Dungan, Toronto PPG1002H, and Mankiw, N. Gregory, Ronald Kneebone, Kenneth J. McKenzie and Nicholas Rowe. 2008. Principles of Macroeconomics, 4th Canadian ed. Toronto: Thomson Nelson.)


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