Week Eight Individual Assignments. What is the simple money (deposit) multiplier?Round to two decimal places? Assignment 05.02 Money Creation and the Money Multiplier 1. 1. What is the formula for the money multiplier? The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital. To calculate the value of loans, we need to use the money multiplier. The money multiplier is the reciprocal of the reserve ratio.