If Banks Become More Pessimistic About the Future of the Economy

question 77

Multiple Choice

If banks become more pessimistic about the future of the economy and increase their holdings of excess reserves, the size of the deposit multiplier will be:

• A)larger.
• B)smaller.
• C)zero.
• D)the same.

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Definitions:

Relationship Roles

The behaviors and expectations associated with a particular role in interpersonal relationships, such as in families, friendships, or romantic partnerships.

Role Tendencies

The typical patterns or behaviors a person exhibits when assuming a specific role within a social or work context.

Small Family

A family unit typically consisting of one or two parents and a small number of children, characterized by closer personal relationships and often seen as more adaptable to modern societal demands.

Small Groups

A subset of people, typically consisting of fewer than 15 members, who interact with each other directly.