If the Money Multiplier Is 2 and the Fed Wants

question 171

Multiple Choice

If the money multiplier is 2 and the Fed wants to increase the money supply by $900,000, it could

• A)buy $300,000 worth of bonds.
• B)buy $450,000 worth of bonds.
• C)sell $300,000 worth of bonds.
• D)sell $450,000 worth of bonds.

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Definitions:

Hallucinogens

A class of psychoactive substances that cause perceptual, sensory, and cognitive distortions, often used recreationally or in spiritual practices.

Motivational Interviewing

A counseling approach designed to strengthen personal motivation and commitment to a specific goal by eliciting and exploring the person’s reasons for change.

Develop Discrepancy

A motivational interviewing technique aimed at helping individuals see the gap between their current behavior and their personal goals or values.

Express Empathy

The act of communicating understanding, compassion, and sensitivity towards another's feelings and experiences.