The money supply equals Group of answer choices a. monetary base plus money multiplier. b. monetary base divided by money multiplier. c. money multiplier divided by monetary base. d. money multiplier multiplied by monetary base.

money multiplier multiplied by monetary base

Explanation:

The money supply equals money multiplier multiplied by monetary base

Money supply is the quantity of money available in an economy for immediate use. It equals the currency held by public plus demand deposits at banks and

Monetary base is the sum of total currency in circulation and the amount held by banks as reserves.

A one-dollar increase in the monetary base causes the money supply to increase by more than one dollar. The increase in the money supply is the money multiplier.

Therefore Money supply is the monetary base multiplied by the money multiplier.