The power of rippling effect of adding money

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Reference no: EM131445272

1. The power of a "rippling effect" of adding money to the financial system is measured by the ________.

multiplier ratio

magnifier ratio

ripple ratio

money multiplier

money magnifier

2. Which of the following will decrease the present value of a perpetuity, other things equal?

Increasing the discount rate

Decreasing the discount rate

Increasing the number of payments

All perpetuities are worth the same

Reference no: EM131445272

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