The Monetary Multiplier Is 3 and the Change in the Monetary

question 362

Multiple Choice

The monetary multiplier is 3 and the change in the monetary base is $100,000.How much will the quantity of money increase?

• A)$300,000
• B)$200,000
• C)$100,000
• D)$70,000
• E)$33,333

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Definitions:

Monthly Payments

Payments that are required to be made every month, often used in the context of loans, mortgages, or subscription services.

Pay Off

To complete the payment of a debt, thereby fulfilling a financial obligation.

Compounded Semi-Annually

Interest on a loan or investment calculated twice a year on the initial principal and previously earned interest.

Amortized

The process of paying off debt through regular payments over a period, which includes both principal and interest.