If an Increase in the Monetary Base of $8 Billion

question 313

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

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Definitions:

Night's Sleep

The period of rest during night time where the body and mind undergo restorative processes.

REM Sleep

A stage of sleep characterized by rapid eye movement, during which most vivid dreaming occurs, and is considered important for learning and memory processes.

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An instrument used to record the electrical activity of the brain.

Beta Waves

Beta waves are a pattern of brain electrical activity signifying an awake, alert, and focused state often associated with active concentration and thinking.