If the Money Multiplier Is Approximated to Be 10, It

question 112

Multiple Choice

If the money multiplier is approximated to be 10, it means:

• A) banks create 10 dollars in deposits from each original deposit of a dollar.
• B) banks create approximately 10 times the amount of cash in the economy.
• C) the economy overall has 10 times the amount of deposits as existing cash.
• D) All of these are true.

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Definitions:

Thinks

The process of considering or reasoning about something; the cognitive activity associated with using the mind to form ideas and make decisions.

Feels

Informal term for feelings or emotions, especially those that are intense or difficult to articulate.

Behaves

To behave means to act or conduct oneself in a specific manner, often in response to one's environment or as dictated by societal norms and expectations.

Ambiguous Genitalia

A condition in which a newborn's external genitalia do not appear to be clearly male or female, making it difficult to assign the infant's sex at birth.