The Money Multiplier Determines How Much

question 336

Multiple Choice

The money multiplier determines how much

• A) real GDP will be expanded given an increase in autonomous investment.
• B) the monetary base will be expanded given a change in the quantity of money.
• C) the quantity of money will be expanded given a change in the monetary base.
• D) money demand will expand given a change in the quantity of money.

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Definitions:

Federal Unemployment Tax Return

A tax return specifically for reporting the amount of federal unemployment tax a business is responsible for paying, related to the wages paid to employees.

Form 940

An IRS form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' paychecks and FICA taxes.

FICA

The Federal Insurance Contributions Act tax, which funds Social Security and Medicare, requiring both employer and employee contributions.