The multiplier effect is the relationship between the reserves in a bank and the money supply. The money multipliers are the same because they equate changes in the money supply to changes in the monetary base times some multiplier.The money multiplier measures how many more dollars are in the economy than in reserves. The money multiplier determines the limit of how much money a bank can create. 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 The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital.