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

question 121

Multiple Choice

Everything else held constant,an increase in the required 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

---

Definitions:

Traditional Authorities

denote individuals or institutions that wield power through customs, traditions, or cultural consensus.

Vilfredo Pareto

An Italian economist and sociologist known for his contributions to economic theory and the Pareto principle, also known as the 80/20 rule.

Interdependent Parts

Components of a system that rely on each other for their function and stability, illustrating the connectedness within a system.

Claude Henri Saint-Simon

A French social theorist and one of the chief founders of Christian socialism, advocating for a society led by intellectuals and industrialists to improve conditions for the poor.