Which of the following functions express the money multiplier (m) for the narrowly defined money stock (M1)?

a. m = ΔMs/Δ(MB) = m(rrd)
b. m = ΔMs/Δ(MB) = m(rrd, CU/D, ER/D)
c. m = ΔMs/Δ(MB) = m(rrd + CU/D)
d. m = ΔMs/Δ(MB) = m(rr/D, CU/D, RR/D)

ANSWER:

B