A Decrease in the Parameter, C, the Proportion of Money

question 29

Multiple Choice

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

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