How to expand the overall money supply by some multiplier

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Explain what we mean by "money" , and taking a "narrow" definition of this measure, how a fractional reserve banking system can take a $1000 of "high-powered" money - like cash - and expand the overall money supply by some multiple of that amount; and why can this "money multiplier" be at times quite unpredictable?

Reference no: EM13244569

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