The Monetary Multiplier Is 3 and the Change in the Monetary

question 362

Multiple Choice

The monetary multiplier is 3 and the change in the monetary base is $100,000.How much will the quantity of money increase?

• A)$300,000
• B)$200,000
• C)$100,000
• D)$70,000
• E)$33,333

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Definitions:

Oxidation State

The measure of the degree of oxidation of an atom in a substance, indicating the number of electrons lost or gained by an atom.

Reaction

A chemical process in which substances interact to form new products typically characterized by a change in properties.

Oxidation State

A numerical value that signifies the total electrons an atom gains or sheds to establish a chemical bond with a different atom.

Reduction

A chemical reaction in which a molecule gains electrons, often accompanied by a decrease in oxidation state.