The money multipliers are the same because they equate changes in the money supply to changes in the monetary base times some multiplier. The multiplier effect is the relationship between the reserves in a bank and the money supply.As a result, the M1 money multiplier was below 1 for most of the time from October 2008 through 2011. How does this relate to your answer to part c? Week Eight Individual Assignments. The new money multiplier is ??? , and the money supply ??? The money multiplier determines the limit of how much money a bank can create.