The Equation That Shows the Amount of the Monetary Base $\mathrm{MB}=\frac{\mathrm{rr}}{\mathrm{D}}+\mathrm{ER}+\mathrm{C}$

question 72

Multiple Choice

The equation that shows the amount of the monetary base needed to support existing levels of checkable deposits,excess reserves,and currency is

• A) MB = (rr ×D) + ER + C.
• B) MB = (rr +D) + ER + C.
• C) \( \mathrm{MB}=\frac{\mathrm{rr}}{\mathrm{D}}+\mathrm{ER}+\mathrm{C} \).
• D) MB = (rr × D) - ER - C.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including the cost of materials and labor.

Production Levels

The quantity of goods or services produced within a specified period, often measured in units, volume, or output.

Per Unit Cost

The average cost associated with producing or acquiring one unit of a product or service.

Variable Expenses

Costs that change in proportion to the activity of a business.