What is the money multiplier and what factors determine its size?
What will be an ideal response?
The money multiplier represents the effect of a given change in high powered money on the money supply. The money multiplier will be affected by changes in two parameters: c and ?. An increase in either parameter will cause a reduction in the money multiplier.
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In the above figure, an unattainable point is
A) a. B) e. C) g. D) f.
Which of the following will be counted as an investment expenditure in the measurement of GDP?
A) purchase of a tractor by a farmer from his neighbor B) purchase of preferred stock in ABC Corporation C) purchase of a newly built tractor by a college fraternity for hay rides at their charity fair D) purchase of an apartment in a newly-built building E) purchase of newly built computers by a municipal government