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प्रश्न
High-powered money (M₀) is called “high-powered” mainly because ______.
पर्याय
It earns the highest interest rate
It directly measures all time deposits
It is fully backed by gold reserves
It creates a multiple expansion of total money supply
MCQ
रिकाम्या जागा भरा
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उत्तर
It creates a multiple expansion of total money supply
Explanation:
M₀ forms the monetary base; through the money multiplier, a small change in M₀ can lead to a much larger change in the overall money supply.
shaalaa.com
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