Over time, the primary cause of increases in the money supply is increases in the
A)monetary base.
B)money multiplier.
C)required reserve ratio.
D)discount rate.

Question

Quizplus · Accepted Answer

The primary cause of increases in the money supply over time is increases in the monetary base. The monetary base consists of currency in circulation and reserves held by banks at the central bank. Central banks control the monetary base through open market operations and other monetary policy tools, directly influencing the overall money supply.

Over Time, the Primary Cause of Increases in the Money