The Money Multiplier Is Used to Determine How Much the

question 22

Multiple Choice

The money multiplier is used to determine how much the

• A)monetary base increases when the Fed purchases government securities.
• B)quantity of money increases when the monetary base increases.
• C)monetary base increases when the quantity of money increases.
• D)quantity of money increases when the required reserve ratio increases.
• E)monetary base increases when the Fed sells government securities.

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