Simply put, is the amount produced by one unit.
Money multiplier refers to the multiple relationship between quantity and base money. The complete formula of money multiplier is: K = (Rc+1)/(Rd+Re+Rc).
Rd stands for required reserve ratio;
Re stands for excess reserve ratio;
Rc stands for the ratio of cash to deposits.
The basic formula of money multiplier is: money supply/base money.
The money supply equals the sum of currency and demand deposits;
Base money is the sum of currency and reserves.