During Recessions,banks Typically Choose to Hold More Excess Reserves Relative

question 91

Multiple Choice

During recessions,banks typically choose to hold more excess reserves relative to their deposits.This action

• A)increases the money multiplier and increases the money supply.
• B)decreases the money multiplier and decreases the money supply.
• C)does not change the money multiplier,but increases the money supply.
• D)does not change the money multiplier,but decreases the money supply.

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Definitions:

Span Of Time

The duration or extent between two points in time.

Poisson Random Variable

A type of random variable that represents the number of events occurring in a fixed interval of time or space, under the condition that these events happen with a known constant mean rate and independently of the time since the last event.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Occurrences

Occurrences refer to the instances or events of something happening or being present in a particular context or dataset.