If the Money Multiplier Is 3

question 160

Multiple Choice

If the money multiplier is 3.5, a $10 billion increase in the monetary base

• A) increases the quantity of money by $35 billion.
• B) increases the quantity of money by $2.86 billion.
• C) increases the quantity of money by $3.5 billion.
• D) increases the quantity of money by $10 billion.

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Definitions:

Timber-Framing System

A construction method using heavy timber framed structures joined by various types of joints, including mortise and tenon, commonly used in buildings prior to the 19th century.

Native Chinese Dynasty

Refers to dynasties in China that were founded and ruled by ethnically Han Chinese, distinguishing them from those established by non-Han peoples.

Qing

The last imperial dynasty of China, ruling from 1644 to 1912, known for its significant cultural, social, and political developments.

Ming

Refers to the Ming Dynasty, a ruling dynasty of China from 1368 to 1644 known for its trade expansion and cultural achievements.