Which of the following is the formula to find money multiplier (m) ? (Here M = total supply of money…
The money multiplier is \(m = \frac{M}{H}\). It measures the money supply supported by each unit of high-powered money, so \(M = mH\).
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Which of the following is the formula to find money multiplier (m) ?
(Here M = total supply of money and H = high power money)
Answer and explanation
Correct answer B
The money multiplier is . It measures the money supply supported by each unit of high-powered money, so .
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Madhya Pradesh SET (MP SET)