If the Money Multiplier Is 3

question 160

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 $2.86 billion.
• C) increases the quantity of money by $3.5 billion.
• D) increases the quantity of money by $10 billion.

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Definitions:

Stratified

Refers to the arrangement or classification of something into different layers, levels, or grades, often used in the context of social stratification.

Global Ranking System

An evaluative framework used to compare and rank entities, such as countries, institutions, or individuals, based on various criteria and metrics.

Colonized

Refers to the process or state of being under the control or influence of a foreign power, often implying exploitation and cultural imposition.

Globalized

Referring to the process by which businesses, technologies, or cultural attributes spread worldwide, leading to increased interconnectedness and interdependence among nations.