The Actual Money Multiplier Multiplied by the Change in Total

question 417

Multiple Choice

The actual money multiplier multiplied by the change in total reserves is the

• A) federal funds rate.
• B) discount rate.
• C) potential money multiplier.
• D) actual change in the money supply.

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Definitions:

Inequality

A mathematical statement that shows the relationship between two expressions that are not equal, using symbols such as <, >, ≤, or ≥.

Real Line

The real line refers to a one-dimensional space where every point represents a real number, stretching infinitely in both positive and negative directions.

Inequality

A mathematical statement that compares two values, showing that one is greater than, less than, or not equal to the other.

Real Number Line

The real number line is a visual representation of all real numbers in a linear arrangement where each point corresponds to a unique real number.