If the Money Multiplier Is 2 and the Fed Wants

question 171

Multiple Choice

If the money multiplier is 2 and the Fed wants to increase the money supply by $900,000, it could

• A)buy $300,000 worth of bonds.
• B)buy $450,000 worth of bonds.
• C)sell $300,000 worth of bonds.
• D)sell $450,000 worth of bonds.

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Definitions:

Self-Understanding

An individual's awareness and comprehension of their own personality, behaviors, emotions, motivations, and beliefs.

Hierarchy Of Needs

A motivational theory in psychology comprising a five-tier model of human needs, depicted as hierarchical levels within a pyramid.

Traits

Relatively stable tendencies of individuals.

Motives

The psychological entities that drive us to behave in ways that will help us meet our goals.