An increase in the monetary base that goes into currency is ________,while an increase that goes into deposits is ________.

Question

Quizplus · Accepted Answer

An increase in the monetary base that goes into deposits is multiplied through the money multiplier process, as banks can lend out a portion of the new deposit. However, an increase that goes into currency does not go through the multiplier process and is not multiplied. Therefore, the first blank should be "not multiplied" and the second blank should be "multiplied".

An Increase in the Monetary Base That Goes into Currency