please explain properly Money created by the money multiplier effect can also be destroyed by the same effect. How or when doesthis happen?when funds are withdrawn from the banking systemwhen income earners pay taxes to the governmentwhen funds are used to buy physical capitalwhen the government stops dropping cash from helicopterswhen a bank loan is made

Money multiplier effect is one of the core parts of monetary policy.

Money created by the money multiplier effect can also be destroyed by the same effect. How or when does this happen? O when funds are withdrawn from the banking system O when income earners pay taxes to the government when funds are used to buy physical capital when the government stops dropping cash from helicopters when a bank loan is made

Money created by the money multiplier effect can also be destroyed by the same effect. How or when does this happen? O when funds are withdrawn from the banking system O when income earners pay taxes to the government when funds are used to buy physical capital when the government stops dropping cash from helicopters when a bank loan is made

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 15P

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