If the Money Multiplier Is 2 and the Fed Buys

question 9

Multiple Choice

If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply?

• A)it increases by $100,000
• B)it increases by $150,000
• C)it decreases by $100,000
• D)it decreases by $150,000

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Social Movement

A collective, organized effort by a large group of people to achieve or resist change in society, often aiming at social or political issues.

Greater Equality

A state or condition where differences in access to resources, opportunities, and rights are minimized across individuals or groups in society.

Social Change

The alteration in societal structures and norms over time, often driven by collective behavior and cultural innovations.

Collective Behavior

Actions taken by a group of people that are spontaneous, unstructured, and not regulated by formal rules, often arising in response to an event or shared emotion.