Which is a consequence of high money multiplier?

CA Foundation · Business Economics · MTP · September 2026
Which is a consequence of high money multiplier?
(A) A. High inflation risk
(B) B. Tight liquidity
(C) C. Increase in SLR
(D) D. Decline in GDP

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. High inflation risk

Topics: Money Market

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