What would cause the money multiplier to decrease?

Money multiplier would decrease when the money lent by the banks is less. You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.

Further readings:

  1. Monetary Policy – Objectives, Roles and Instruments (UPSC Indian Economy)
  2. Topic-Wise GS 3 Questions for UPSC Mains

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