Other Things the Same, If Reserve Requirements Are Decreased, the Reserve

question 204

Multiple Choice

Other things the same, if reserve requirements are decreased, the reserve ratio

• A)increases, the money multiplier increases, and the money supply increases.
• B)decreases, the money multiplier increases, and the money supply increases.
• C)increases, the money multiplier decreases, and the money supply decreases.
• D)decreases, the money multiplier decreases, and the money supply increases.

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