Which of the Following Will Cause the Money Multiplier to Become

question 16

Multiple Choice

Which of the following will cause the money multiplier to become smaller?

• A)an increase in high powered money
• B)a decrease in the ratio of reserves to checkable deposits
• C)an increase in the public's preference for checking deposits as opposed to holding currency
• D)a reduction in high powered money
• E) none of the above

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Definitions:

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, emphasizing the impact of society and culture.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

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The protection, preservation, management, or restoration of natural environments and the ecological communities that inhabit them.

Nickels

A denomination of currency in the United States worth 5 cents.