Decisions of ________ determine the magnitude of the monetary multiplier.
A)only the Fed
B)only the public
C)both the Fed and the public
D)neither the Fed nor the public
E)Fed and the U.S. Congress

Question

Quizplus · Accepted Answer

The magnitude of the monetary multiplier is determined by the decisions of both the Fed and the public. The Fed can influence the size of the multiplier through its monetary policy actions, such as changing the reserve requirement or open market operations. The public's decisions to either hold onto money or spend and invest it also affect the multiplier. Therefore, both the Fed and the public play a role in determining the magnitude of the monetary multiplier.

Decisions of ________ Determine the Magnitude of the Monetary Multiplier