Suppose That the Money Multiplier Is 3

question 109

Multiple Choice

Suppose that the money multiplier is 3. If the monetary base increases by $1 million, the quantity of money will

• A) increase by $3 million.
• B) increase by $333,333.
• C) decrease by $3 million.
• D) decrease by $333,333.

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Definitions:

Folic Acid

A B-vitamin essential for cell growth and metabolism, important for the production of DNA and RNA, and crucial for preventing birth defects during pregnancy.

Calcium

A chemical element and essential nutrient that is crucial for many bodily functions, including bone health and nerve transmission.

Iron

A chemical element with symbol Fe and atomic number 26, essential for human health as it plays a critical role in oxygen transport and metabolic processes.

Teratogens

Agents, such as chemicals or viruses, that can cause birth defects or abnormalities in a developing fetus when exposed to them during pregnancy.