Suppose that the monetary base increases by 400 billion if


Suppose that the monetary base increases by $400 billion. If the money multiplier equals 2.75, the money supplies:

A. decreases by $400 billion.

B. increases by $400 billion.

C. remains unchanged.

D. increases by $1,100 billion.

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Business Economics: Suppose that the monetary base increases by 400 billion if
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