Author Question: When the monetary base increases by 4 billion, the quantity of money increases by 10 billion. Thus, ... (Read 80 times)

chads108 · **on:** Jun 29, 2018

When the monetary base increases by 4 billion, the quantity of money increases by 10 billion. Thus, the money multiplier equals

A) 0.4.
B) 2.5.
C) 40.0.
D) none of the above.

Question 2

As the quantity of a good consumed increases, its marginal utility ________ and its total utility ________.

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases