Theoretical Background: Money Multiplier It can be see, 1000e,. turned"into 10000∈. The Money№utip|ier Let the reserve ratio be r Money multiplier m =I/R The Money multiplier equals the total money supply, that one unit of money will createTheoretical Background: Money Multiplier  It can be see 1000 It can be see, 1000 € „turned into “ 10000€.  The Money Multiplier ◦ Let the Reserve ratio be R. ◦ Money Multiplier m = 1/R  Th M lti li l th t t l Th e Money multiplier equals t h e total money supply, that one unit of money will create