The ratio that relates the change in the money supply to a given change in the monetary base is called the:

CA Foundation · Business Economics · MTP · January 2025
The ratio that relates the change in the money supply to a given change in the monetary base is called the:
(A) A. required reserve ratio
(B) B. money multiplier
(C) C. Deposit ratio
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. money multiplier

Topics: Price Determination in Different Markets

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