Multiplier Effect, economics assignment help

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wtyr75

Economics

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How does the multiplier facilitate the creation of money? Note: Be careful you do not confuse the monetary multiplier with the "multiplier effect" that is associated with gross domestic product (GDP) and is also referred to as the spending multiplier or the GDP multiplier.

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Multiplier Effect
The multiplier effect is a term used to describe the avenues by which a country can
multiply its money supply. Usually, this comes about from the ability of banks within...


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