Answered: If an increase in the monetary base of…

If an increase in the monetary base of $8 billion increases the quantity of money by $64 billion, then the money multiplier is equal to Select one: a. $8 billion b. $64 billion с. 1/8 d. 8

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 10PA

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The solution method please.

If an increase in the monetary base of $8 billion
increases the quantity of money by $64 billion, then
the money multiplier is equal to
Select one:
a. $8 billion
b. $64 billion
С. 1/8
d. 8

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