An Increase in the Parameter, C, the Proportion of Money

question 12

Multiple Choice

An increase in the parameter, c, the proportion of money individuals wish to hold as currency, will tend to cause which of the following?

• A) A decrease in the monetary base.
• B) An increase in reserves.
• C) A decrease in the money multiplier.
• D) An increase in the monetary base.
• E) An increase in the money multiplier.

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