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M2 Money Multiplier Equals

Question 2

Multiple Choice

M2 money multiplier equals


A) (nontransaction accounts + money market funds) ÷ monetary base
B) (M1 + nontransaction accounts ­ money market funds) × reserves
C) (M2 ­ money market funds) ÷ excess reserves
D) (M1 + nontransaction accounts + money market funds) ÷ monetary base

Correct Answer:

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