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CBSE Class 12-commerce Answered

What is meant by money multiplier? Give the formula of money multiplier.
Asked by Topperlearning User | 18 Apr, 2016, 10:57: AM
answered-by-expert Expert Answer

Money multiplier means the ratio of the stock of money to the stock of high powered money in an economy.

Money multiplier:

= Stock of Money/Stock of High Powered Money

= M/H

Answered by | 18 Apr, 2016, 12:57: PM

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