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:

Self-Directed Search

A self-administered, scored, and interpreted interest inventory that was created by Holland and uses his personality types.

Reliability

In statistics and psychometrics, reliability refers to the consistency of a measure or test over time or across different raters.

Validity

The degree to which a test accurately measures what it is intended to measure.

COPSystem

An assessment tool designed to aid in career guidance, integrating values, interests, and abilities.