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    Economics-Macroeconomics
  4. Exam
    Exam 8: Money, the Price Level, and Inflation
  5. Question
    Suppose That the Money Multiplier Is 3
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Suppose That the Money Multiplier Is 3

Question 109

Question 109

Multiple Choice

Suppose that the money multiplier is 3. If the monetary base increases by $1 million, the quantity of money will


A) increase by $3 million.
B) increase by $333,333.
C) decrease by $3 million.
D) decrease by $333,333.

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