Injecting banking system with massive amounts of liquidity

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Following the financial crisis in 2008, the Federal Reserve began injecting the banking system with massive amounts of liquidity, and at the same time, very little lending occurred. As a result, the M1 money multiplier was below 1 for most of the time from October 2008 through 2011. Is it possible for the money supply to remain the same while the money multiplier declines? Why or why not?

Reference no: EM13875224

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