If the Money Multiplier Is Approximated to Be 4, Then

question 141

Multiple Choice

If the money multiplier is approximated to be 4, then the reserve ratio must be:

• A) 25 percent.
• B) 2.5 percent.
• C) 5 percent.
• D) 4 percent.

---

Definitions:

1930s

The decade ranging from the year 1930 to 1939, significant for its economic depression globally known as the Great Depression.

McCulloch v. Maryland

A landmark U.S. Supreme Court decision in 1819 that established the principles of national supremacy and implied powers of the federal government.

Gibbons v. Ogden

A landmark Supreme Court case in 1824 that clarified the scope of Congress's power to regulate interstate commerce, establishing a broad interpretation of the Commerce Clause.

John Marshall

The fourth Chief Justice of the United States (1801–1835), who played a significant role in establishing the power of the Supreme Court.