Suppose that the money multiplier is 3. If the monetary base ...

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Suppose that the money multiplier is 3. If the monetary base increases by 1 million, the quantity of money will
 
  A) increase by 3 million.
  B) increase by 333,333.
  C) decrease by 3 million.
  D) decrease by 333,333.

Question 2

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.
 
  Indicate whether the statement is true or false

[Awesome]

Answer to Question 1

A

Answer to Question 2

TRUE