Everything Else Held Constant,an Increase in the Excess Reserve Ratio

question 74

Multiple Choice

Everything else held constant,an increase in the excess reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply.

• A)an increase;an increase
• B)an increase;a decrease
• C)a decrease;an increase
• D)a decrease;a decrease

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Definitions:

Producers

Organisms, typically plants, that synthesize food from inorganic substances and solar energy, serving as the base of the food chain.

Consumers

Organisms that obtain energy by feeding on other organisms or organic matter because they cannot produce their own food.

Calvin Cycle

A set of chemical reactions that take place in chloroplasts during photosynthesis, using carbon dioxide and water to produce glucose.

Light Reactions

The phase of photosynthesis where light energy is captured and used to produce ATP and NADPH, which are then used in the Calvin cycle.