What is the ratio of the stock of money to the stock of high powered money in…
2021
What is the ratio of the stock of money to the stock of high powered money in an economy called?
- A.
Money multiplier
- B.
Money exchange
- C.
Money credit
- D.
Money supply
Attempted by 6 students.
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Correct answer: A
The ratio of the stock of money to the stock of high-powered money is called the money multiplier. It measures how the monetary base expands into money supply.