How It Works

Step 1: Access the Money Multiplier Calculator
Open the economics calculator interface.

Step 2: Input the Reserve Ratio
Enter the percentage of deposits banks are required to keep in reserve (e.g., 10%).

Step 3: Click the Calculate Button
Press 'Calculate Multiplier'.

Step 4: Review the Money Multiplier Value
The tool will display the value indicating how much the money supply can expand for every one dollar of reserves.