The money multiplier can be used as an expansionary and also an expansionary tool by a given government.
<h3>What is an expansionary tool?</h3>
As an expansionary tool, the money multiplier may be used to increase the amount of money supply that is in an economy. This would cause the interest rates to be low so that people would not have much benefits from saving their money.
<h3>As a contractionary tool</h3>
The money multiplier can be used to reduce the amount of money that is in circulation in a given economy. This would make people want to save more money in the bank because the interest rate is going to be raised.
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Decreases.
An example of this is the food chain. Predators at the top of the food chain receive the least amount of energy due to the lack of raw energy.
Sun - Plant - Rabbit - Dog - Kyote
100% - 90% - 80% - 70% - 60%
Hopefully that was a good enough example.
Answer:
true
Explanation:
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