In the Nineteenth Century When There Were Often Bank Runs

question 212

Multiple Choice

In the nineteenth century when there were often bank runs caused by crop failures,banks would make relatively fewer loans and hold relatively more excess reserves.By itself,these actions by the banks should have

• A)increased the money multiplier and the money supply.
• B)decreased the money multiplier and increased the money supply.
• C)increased the money multiplier and decreased the money supply.
• D)decreased both the money multiplier and the money supply.

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Definitions:

Socially Constructed

A concept or perception that is created and developed by society, and understood through cultural or social practice rather than existing inherently or naturally.

Theoretical Perspective

A specific viewpoint or set of principles that guides research and understanding within a discipline.

Moral Standards

Are principles of behavior based on ideas of right and wrong that guide individual or group actions within society.

Social Control

Mechanisms, strategies, and practices used by societies or institutions to regulate individual or group behavior and ensure conformity and compliance.