If the Money Multiplier Is 3 and the Fed Wants

question 88

Multiple Choice

If the money multiplier is 3 and the Fed wants to increase the money supply by $900,000, it could

• A)buy $300,000 worth of bonds.
• B)buy $225,000 worth of bonds.
• C)sell $300,000 worth of bonds.
• D)sell $225,000 worth of bonds.

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