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What is noney multiplier ? How will you ...

What is noney multiplier ? How will you determine its value? What ratios play an important role in the determination of the value of the money multiplier?

Text Solution

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Money multiplier =`(1)/(LRR)`
Lower the LRR, higher is the value of money multiplier and vice versa (Refer to 6.2.1)
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Knowledge Check

  • Value of multiplier is determined by :

    A
    MPS
    B
    MPC
    C
    Both (a) and (b)
    D
    Investment

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