Consider an economy with $12 billion in base money and a multiplier of 6. The money supply is currently $12 billion × 6 = $72 billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the money supply to remain unaffected by this change in base money? Instructions: Round your answer to two decimal places. The multiplier must change to: |

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Consider an economy with $12 billion in base money and a multiplier of 6. The money supply is currently $12 billion × 6 = $72
billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the
money supply to remain unaffected by this change in base money?
Instructions: Round your answer to two decimal places.
The multiplier must change to: |
Transcribed Image Text:Consider an economy with $12 billion in base money and a multiplier of 6. The money supply is currently $12 billion × 6 = $72 billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the money supply to remain unaffected by this change in base money? Instructions: Round your answer to two decimal places. The multiplier must change to: |
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