我的想法
Money Multiplier is the determination of the Money Supply
Where, is the currency-deposit ratio, is the reserve-deposit ratio.
Definition
The increase in the money supply resulting from a one-dollar increase in the monetary base
An exercise example
The Federal Reserve wants to increase the money supply by printing and distributing 1 million dollars. What will be the actual increase in money supply if the public holds one-fourth of the currency as cash and deposits rest of the money in banks that hold 5 percent of their deposits as reserves?
Answer