If the Money Multiplier Is 3 and the Fed Buys

question 46

Multiple Choice

If the money multiplier is 3 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 $200,000

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Definitions:

Gene Expression

Gene expression is the process by which information from a gene is used to synthesize functional gene products, often proteins, influencing an organism's structure and functions.

DNA Fingerprinting

A technique used to identify individuals by characteristics of their DNA.

DNA Cloning

A laboratory technique used to create multiple identical copies of a piece of DNA.

Transgenic DNA

DNA that has been introduced into an organism from another species, resulting in a transgenic organism with new traits.