Everything Else Held Constant,an Increase in the Time Deposit Ratio

question 7

Multiple Choice

Everything else held constant,an increase in the time deposit 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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