If the Money Multiplier Is 3

question 273

Multiple Choice

If the money multiplier is 3.0,a $1,000 increase in the monetary base

• A)increases quantity of money by $3,000.
• B)decreases quantity of money by $3,000.
• C)increases the monetary base by $300.
• D)increases the money multiplier by 3 percent.
• E)decreases the quantity of money by 3 percent.

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Definitions:

Oligopoly Industry

A market structure dominated by a small number of companies, leading to limited competition and potentially higher prices for consumers.

Firms

Business organizations, such as corporations, partnerships, or sole proprietorships, that are engaged in commercial, industrial, or professional activities.

Market

A platform or area where buyers and sellers come together to exchange goods, services, or information.

Firm Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.