If an Increase in the Monetary Base of $8 Billion

question 83

Multiple Choice

If an increase in the monetary base of $8 billion increases the quantity of money by $64 billion, then the money multiplier is equal to .

• A) 1/8
• B) $8 billion
• C) 8
• D) $64 billion

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Definitions:

Erie Canal

A significant waterway in New York, opened in 1825, that connected the Great Lakes with the Atlantic Ocean, facilitating trade and settlement.

Farmers Migrating

The movement of agricultural workers and farmers from rural areas to urban ones or from one country to another, often in search of better farming opportunities or in response to environmental and economic pressures.

William Findlay

A political figure or personage, without more context, clarification needed for specific identification.

Commercial Railroad

A railway system designed primarily for the transportation of goods and passengers for business purposes, significantly contributing to economic development.