If the money multiplier is large,then action taken at the bottom of the money pyramid will have a relatively large effect on the entire pyramid.

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The money multiplier refers to the amount by which the money supply is increased for every unit increase in the monetary base. If the money multiplier is large, it implies that a small change in the monetary base (i.e. action taken at the bottom of the pyramid) can result in a large change in the money supply (and the entire pyramid). Therefore, actions taken at the bottom of the money pyramid will have a relatively large effect on the entire pyramid.

If the Money Multiplier Is Large,then Action Taken at the Bottom