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If the Bank of Canada increases the monetary base by $5 million and the money multiplier is 5, M1 will a) rise by $25 million.
If the Bank of Canada increases the monetary base by $5 million and the money multiplier is 5, M1 will
a) rise by $25 million.
b) fall by $25 million.
c) rise by $1 million.
d) fall by $1 million.
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