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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Definitions:

HVAC System

Heating, Ventilation, and Air Conditioning system that provides heating and cooling to residential and commercial buildings.

Remote Control

A device used to operate another device from a distance, commonly through infrared or wireless connectivity.

Norepinephrine

Norepinephrine is a neurotransmitter and hormone important in the body's fight or flight response, involved in increasing heart rate and blood pressure.

Sympathetic Nerve

Part of the autonomic nervous system that stimulates the body's fight or flight response.