Money Multiplier · How Banks Multiply the Central Bank's Money #Shorts
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Money Multiplier · How Banks Multiply the Central Bank's Money #Shorts
m = (1+c)/(c+r). The central bank creates the monetary base. Commercial banks multiply it via fractional reserve lending. c=20%, r=10% → multiplier of 4. Subscribe to Macro Economics with Michael for more. #Shorts #Macroeconomics
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