The Money-Creation Multiplier Is the

question 113

Multiple Choice

The money-creation multiplier is the

• A)same as the income-determination multiplier.
• B)amount by which the money supply would rise with a $1 increase in the supply of high-powered money.
• C)amount by which the money supply of high-powered money will increase equilibrium GDP.
• D)amount by which a $1 increase in reserves would raise an individual bank's deposit liabilities.

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Definitions:

Human and Material Resources

Human and material resources refer to the personnel and physical supplies or commodities, respectively, that an organization utilizes to carry out its operations.

Evaporation

The process by which water changes from a liquid to a gas or vapor.

Organic-rich Black Shale

Sedimentary rocks that contain high amounts of organic matter, typically appearing dark in color, and are potentially sources of fossil fuels.

Silica-rich Creatures

Marine organisms that have skeletons made primarily of silica, such as diatoms and certain types of sponges.