If the Fed decreases the monetary base by $100 million and the money multiplier is 4, M1 will
A) rise by $400 million.
B) fall by $400 million.
C) rise by $25 million.
D) fall by $25 million.
B
Economics
You might also like to view...
The above figure shows the payoff to two gasoline stations, A and B, deciding to operate in an isolated town. Suppose a $30 fee is required to enter the market. If firm A chooses its strategy first, then
A) firm A will not enter. B) neither firm will enter. C) both firms will enter. D) firm A will enter and firm B will not.
Economics
IBM undertook a massive restructuring program to decentralize into six smaller decision-making groups in order to reduce economies of scale
a. True b. False
Economics