An Increase in the Parameter C,the Proportion of Money Individuals

question 14

Multiple Choice

An increase 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 monetary base (H)
• B)a reduction in H
• C)an increase in the money multiplier
• D)a reduction in the money multiplier

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Definitions:

Contra-Asset

An account that decreases the balance of its associated asset account through a contra entry.

Supplies

Consumable items used in day-to-day operations of a business or office, such as stationery, paper, and cleaning products.

Expenses

Outflows or other uses of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Assets

Resources owned or controlled by a business, considered to have economic value and expected to benefit future operations.