If the money supply is equal to $500 billion and the monetary base is equal to $250 billion, the money multiplier is equal to ________.

Name: If the money supply is equal to $500 billion and the monetary base is equal to $250 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. In this case, it is $500 billion / $250 billion = 2.

If the Money Supply Is Equal to $500 Billion and the Monetary