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The Money Multiplier Is Used to Determine How Much the

Question 22

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The money multiplier is used to determine how much the


A) monetary base increases when the Fed purchases government securities.
B) quantity of money increases when the monetary base increases.
C) monetary base increases when the quantity of money increases.
D) quantity of money increases when the required reserve ratio increases.
E) monetary base increases when the Fed sells government securities.

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