A $10 million open market sale will decrease the monetary base by
A) $10 million.
B) $10 million times the money multiplier.
C) $10 million divided by the money multiplier.
D) an amount between $0 and $10 million, depending on the fraction of the purchase the public wishes to hold as currency.
A
Economics
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Explain the intuition behind why the aggregate demand curve is downward sloping. Why does an increase in the money supply shift the aggregate demand curve to the right?
What will be an ideal response?
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Which of the following markets has the most restrictive geographic boundary?
A) The market for retail gasoline B) The market for housing C) The market for gold D) The market for beef
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