If enough banks and investors become sufficiently reluctant to lend, the '..... effect' will go into reverse: total credit will contract, so bank deposits will contract, so the supply of money will contract, all with the same degree of leverage with which they were intially expanded.

If enough banks and investors become sufficiently reluctant to lend, the '..... effect' will go into reverse: total credit will contract, so bank deposits will contract, so the supply of money will contract, all with the same degree of leverage with which they were intially expanded. (*) doppler (*) duplicator (*) magnifier (*) multiplier


This is a companion discussion topic for the original entry at https://english.best/questions/10492,if-enough-banks-and-investors-become-sufficiently-reluctant-to-lend-the-___-effect-will-go-into-reverse-total-credit-will-contract-so-bank-deposits-will-contract-so-the-supply-of-money-will-contract-all-with-the-same-degree-of-leverage-with-which-they-were-intially-expanded/