A Change in the Monetary Base Leads to a Larger

question 103

Multiple Choice

A change in the monetary base leads to a larger change in the money supply since

• A) reserves earn interest for the bank.
• B) banks lend excess reserves, which become deposits.
• C) a change in the monetary base changes the likelihood that households hold cash.
• D) none of the above.

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Definitions:

Depolarization

A reduction in the difference in electrical charge across a cell's plasma membrane, which is a crucial step in the conduction of impulses along nerve cells.

Voltage-Gated

Ion channels that open or close in response to changes in membrane potential, playing key roles in the transmission of neural impulses.

Myelin Sheaths

Protective coverings around nerve fibers made of myelin, which increase the speed at which impulses propagate along the myelinated fiber.

PNS

Peripheral Nervous System, which consists of the nerves and ganglia outside of the brain and spinal cord.