If the Money Multiplier Is 3

question 273

Multiple Choice

If the money multiplier is 3.0,a $1,000 increase in the monetary base

• A)increases quantity of money by $3,000.
• B)decreases quantity of money by $3,000.
• C)increases the monetary base by $300.
• D)increases the money multiplier by 3 percent.
• E)decreases the quantity of money by 3 percent.

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Definitions:

Mutual Understanding

A state in which two or more parties possess a shared knowledge or perception regarding specific ideas, values, or situations, leading to enhanced communication and cooperation.

Closeness

The intimacy or degree of proximity and understanding between individuals, fostering strong bonds or relationships.

Intimacy

A near and dear relationship characterized by affection or love with another individual or a group.

Passion

An emotional state characterized by high bodily arousal, such as increased heart rate and blood pressure.