If the Money Multiplier Is Equal to 2 and the Money

question 39

Multiple Choice

If the money multiplier is equal to 2 and the money supply is equal to $100 billion, the monetary base is equal to ________.

• A) $50 billion
• B) $200 billion
• C) $25 billion
• D) cannot be determined

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Definitions:

Cost

The amount of money required to purchase something or to produce a good or service.

Invoice

A document issued by a seller to a buyer that lists goods or services provided and the amount due.

Terms

Conditions and stipulations that are part of an agreement or contract.

Terms

Conditions and agreements under which a service, sale, or transaction is conducted.