If the money supply is equal to $400 billion and the monetary base is equal to $100 billion, the money multiplier is equal to ________.

Name: If the money supply is equal to $400 billion and the monetary base is equal to $100 billion, the money multiplier is equal to ________.
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Quizplus · Accepted Answer

The money multiplier is calculated as the ratio of the money supply to the monetary base, which in this case is $400 billion / $100 billion = 4.

If the Money Supply Is Equal to $400 Billion and the Monetary