Suppose that the money multiplier is 3. If the monetary base increases by $1 million, the quantity of money will

Name: Suppose that the money multiplier is 3. If the monetary base increases by $1 million, the quantity of money will
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The money multiplier indicates how much the money supply will increase for a given increase in the monetary base. If the multiplier is 3, then a $1 million increase in the monetary base will result in a $3 million increase in the money supply.

Suppose That the Money Multiplier Is 3