If the money multiplier is equal to 2 and the money supply is equal to $100 billion, the monetary base is equal to ________.

Name: If the money multiplier is equal to 2 and the money supply is equal to $100 billion, the monetary base is equal to ________.
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Question

Quizplus · Accepted Answer

The monetary base is equal to the money supply divided by the money multiplier. Therefore, if the money supply is $100 billion and the money multiplier is 2, the monetary base is $100 billion / 2 = $50 billion.

If the Money Multiplier Is Equal to 2 and the Money