A $10 Million Open Market Purchase Will Increase the Monetary

question 70

Multiple Choice

A $10 million open market purchase will increase the monetary base by

• A)$10 million.
• B)$10 million times the money multiplier.
• C)$10 million divided by the money multiplier.
• D)an amount between $0 and $10 million, depending on the fraction of the purchase the public wishes to hold as currency.

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Definitions:

Republican Party Presidential Nominee

The individual selected to represent the Republican Party in the United States presidential election.

Barry Goldwater

A significant figure in American politics, known for his 1964 presidential campaign and as a major proponent of conservatism in the United States.

Initiative

A process or strategy intended to resolve an issue or create change.

Reluctant

Feeling or showing hesitation or unwillingness to do something.