Economics · Indian Economy
What is meant by 'Money Multiplier' in the context of macroeconomics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The annual rate of growth of headline inflation
- 2The exchange rate stability achieved by currency pegging
- 3The ratio of the money supply to the monetary base in the banking system✓
- 4The rate at which the central bank prints currency note
Correct answer
The ratio of the money supply to the monetary base in the banking system
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