If the Money Multiplier Is 3

question 384

Multiple Choice

If the money multiplier is 3.5,a $10 billion increase in the monetary base

• A) increases the quantity of money by $35 billion.
• B) increases the quantity of money by $10 billion.
• C) increases the quantity of money by $3.5 billion.
• D) increases the quantity of money but not by an amount given above.

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Definitions:

Corpus Callosum

The large band of neural fibers connecting the two hemispheres of the brain, facilitating interhemispheric communication.

Adrenal Gland

An endocrine organ located above the kidneys that produces hormones such as adrenaline and cortisol, which help regulate metabolism, stress response, and blood pressure.

Sodium

A chemical element, symbol Na, involved in maintaining normal fluid balance, nerve function, and muscle contraction.

Diet

The total of food consumed by a person or other organism, often referring specifically to a planned regimen of eating and drinking for health or weight-management reasons.