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 multiplier (MM) ratio is =10.True or False: The money multiplier will increase. True or False: As a result, the overall change in the money supply will remain unchanged. False In this video I explain the reserve requirement, the money multiplier, and how money is created. ∆M = 100 1−(1− f) = 100 f = 1000. The maximum increase in the money supply is. How much money can I request?