Assuming Initially That R = 15%,c = 40%,and E =

question 17

Multiple Choice

Assuming initially that r = 15%,c = 40%,and e = 5%,a decrease in e to 0% causes the M1 money multiplier to ________,everything else held constant.

• A)increase from 2.33 to 2.55
• B)decrease from 2.55 to 2.33
• C)increase from 1.67 to 1.82
• D)decrease from 1.82 to 1.67

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Definitions:

Internal

Located within or happening inside a body, mind, or institution.

External

Pertaining to or relating to the outside or exterior part of something.

Electrical Stimulation

A therapeutic or analysis technique involving the application of electrical impulses to nerves or muscles.

EEG

Electroencephalography, a noninvasive method to record electrical activity of the brain via electrodes placed on the scalp.