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Suppose an increase in the monetary base of $200,000 increases the quantity of money by $800,000. Calculate the money multiplier. The money multiplier is _____

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose an increase in the monetary base of $200,000 increases the quantity of money by $800,000. Calculate the money multiplier. The money multiplier is _____

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