AP Macroeconomics · Past multiple choice · Question 8, Fall 2020 edition · Four-function calculator
Why new reserves fall short of the full multiplier
The central bank has enlarged the monetary base. Find the reason the money supply grows by less than the most it could.
The lesson this question tests
1 Read the question
The question is College Board's: sample question 8 in AP Macroeconomics Course and Exam Description, Effective Fall 2020. It starts on page 143 of the PDF. College Board no longer posts this edition, so it opens from the copy the Internet Archive saved on November 17, 2020. A four-function calculator is allowed, as on the exam.
Open Question 8 (PDF, page 143)
2 Pick your answer
Question and answer key: College Board, from the Internet Archive. The title and summary are ours.