If the money supply is $400 billion and the money multiplier is 2, then the monetary base is:
A) $800 billion.
B) $400 billion.
C) $200 billion.
D) $2 billion.
Correct Answer:
Verified
Q49: Suppose, the current reserve ratio is 20%
Q50: Monetary base or high-powered money (H) may
Q51: Which of the following statements is false?
A)
Q52: If a bank's reserve ratio is 10
Q53: If the cash-drain is zero, the multiple
Q55: If the monetary base is $300 billion
Q56: Deposit-creation is higher:
A) the higher their desired
Q57: If excess reserves of $1000 can generate
Q58: When an individual deposits cash into a
Q59: Suppose Jack deposits $600. Later that day
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents