If the money multiplier is 3.5, a $10 billion increase in the monetary base
A) increases the quantity of money by $35 billion.
B) increases the quantity of money by $2.86 billion.
C) increases the quantity of money by $3.5 billion.
D) increases the quantity of money by $10 billion.
A
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The marginal propensity to consume is always
a. a negative number b. larger than 1.0 c. larger than 10 d. greater than zero and less than 0.5 e. greater than zero and less than 1.0
To maximize profits, a monopolist produces the quantity by which of the following?
a. Marginal revenue equals average total cost. b. Price equals marginal revenue. c. Marginal revenue equals marginal cost. d. Price equals marginal cost.
Since demand curves are mostly downward sloping, economists tend to ignore the negative sign when calculating the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
We don't typically see wages ________ in response to an economic downturn because ________.
A. fall; they are "sticky" and are slow to respond to shifts in the economy B. fall; they cannot fall below where they were previously set due to inflation C. rise; they cannot rise above the equilibrium in any circumstance D. rise; they are "sticky," and are slow to respond to shifts in the economy