The Maximum Amount of Increase in the Money Supply That

question 173

Multiple Choice

The maximum amount of increase in the money supply that can be caused by an increase in excess reserves is equal to the

• A) deposit multiplier * the required reserve ratio.
• B) loan multiplier * the change in excess reserves.
• C) deposit multiplier ÷ the change in excess reserves.
• D) deposit multiplier * the change in excess reserves.

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