Can an increase in the deposits rate increase the money multiplier?

An increase in deposit rates will incite contributors to deposit more, subsequently prompting a decrease in cash to aggregate deposit proportion or ratio. This will thus prompt an ascent or an increase in the money multiplier.

Was this answer helpful?


0 (0)


Choose An Option That Best Describes Your Problem

Thank you. Your Feedback will Help us Serve you better.

Leave a Comment

Your Mobile number and Email id will not be published. Required fields are marked *




Free Class