The money multiplier in an economy
increases with which one of the following?

The money-multiplier is the maximum amount of broad money (M3 Money) that could be created by the commercial banks for a given fixed amount of base money or reserve ratios. Or, simply it can be stated that the maximum amount of money that the banking system generates with each rupees of reserves.

So, more the people will be linked with the banking system or have the habit of banking more will be the money in use in the form of loans, credits etc. that results an increase in economic activity. This will dirctly help in increase money multiplier in an economy. The money multiplier goes up because of the reduction in the cash reserve ratio (CRR).