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When Calculating by How Much Changes in the Money Supply

question 70

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When calculating by how much changes in the money supply will change nominal GDP,we use the money multiplier instead of the spending multiplier.


Definitions:

Commodity Resources

Natural resources or goods that are considered valuable in their natural form, such as oil, gold, and agricultural products.

Consumption Per Person

Consumption per person measures the amount of goods and services consumed, on average, by each person within a population.

Replacement Rate

The proportion of a person's pre-retirement income that is paid out by a pension program upon retirement.

Birthrate

The number of live births per thousand of the population in a specified area or time period.

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