"The ratio of total money supply to the stock of high powered money in an economy" is referred to : |
Money Multiplier Tax Multiplier GDP Multiplier Money Supply |
Money Multiplier |
The correct answer is Money Multiplier. The money multiplier is a measure of the extent to which a central bank can increase the money supply by adding money to the economy. It is calculated by dividing the total money supply by the stock of high-powered money, which is the money held by the central bank and commercial banks. |