If the money multiplier is 3 and the Fed buys $50,000 worth of bonds, what happens to the money supply?
a. it increases by $100,000
b. it increases by $150,000
c. it decreases by $100,000
d. it decreases by $200,000
b
Economics
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In the long-run, the quantity of real GDP supplied increases when the price level increases
Indicate whether the statement is true or false
Economics
The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift
a. real GDP b. government tax revenue c. the money supply d. real interest rate e. the consumer price index
Economics