When the Monetary Base Is Equal to $200 Billion, the Desired

question 109

Multiple Choice

When the monetary base is equal to $200 billion, the desired reserve ratio is 0.10 and the currency ratio is equal to 0.20, the money multiplier is equal to ________ and the money supply is equal to ________.

• A) 4; $800 billion
• B) 3.67; $734 billion
• C) 4; $734 billion
• D) 3.67; $800 billion

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