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"The ratio of total money supply to the stock of high powered money in an economy" is referred to :

Solution

Correct Option: 1

Money Multiplier is defined as the ratio of total money supply (M) to the stock of high-powered money (H) in an economy. Mathematically, Money Multiplier=M/H=1/LRRMoney\ Multiplier = M/H = 1/LRR in a simple model. It measures how many times the total money supply expands relative to the monetary base.

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