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The Money-Creation Multiplier Is the

Question 61

Multiple Choice

The money-creation multiplier is the


A) same as the income-determination multiplier.
B) amount by which the money supply would rise with a $1 increase in the supply of high-powered money.
C) amount by which the money supply of high-powered money will increase equilibrium GDP.
D) amount by which a $1 increase in reserves would raise an individual bank's deposit liabilities.

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