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    Modern Principles of Economics
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    Exam 15: The Federal Reserve System and Open Market Operations
  5. Question
    If a $500 Increase in Reserves Ultimately Leads to a $2,000
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If a $500 Increase in Reserves Ultimately Leads to a $2,000

Question 89

Question 89

Multiple Choice

If a $500 increase in reserves ultimately leads to a $2,000 increase in the money supply, the money multiplier is:


A) 0.5.
B) 1.
C) 4.
D) 40.

Correct Answer:

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