Real-World Accuracy of the Money Multiplier Can Be Affected By

question 105

Multiple Choice

Real-world accuracy of the money multiplier can be affected by:

• A) the income tax rate set by the government.
• B) the way the public divides its holding of M1 between currency and certificates of deposit.
• C) an increase in government spending.
• D) the President's decision to alter the money multiplier.