The Money Multiplier Is

question 133

Multiple Choice

The money multiplier is

• A)the amount by which a change in the monetary base is multiplied to determine the change in the quantity of money.
• B)the amount by which a change in the quantity of money is multiplied to determine the change in the monetary base.
• C)equal to bank reserves divided by the change the quantity of money.
• D)equal to bank reserves divided by the change in the monetary base.

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