The multiplier effect is the relationship between the reserves in a bank and the money supply. Week Eight Individual Assignments.The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital. The money multipliers are the same because they equate changes in the money supply to changes in the monetary base times some multiplier. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier. b. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. The money multiplier determines the limit of how much money a bank can create.