Everything Else Held Constant,an Increase in the Excess Reserve Ratio

question 166

Multiple Choice

Everything else held constant,an increase in the excess reserve ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier.

• A)an increase;an increase
• B)no change;an increase
• C)a decrease;a decrease
• D)no change;a decrease

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Definitions:

Behaviorists

Behaviorists are psychologists who focus on observable behaviors rather than internal processes such as thoughts and emotions, emphasizing the study of directly observable behaviors and their environmental determinants.

Structuralists

Psychologists who analyze the basic elements of consciousness and how they relate to experience, focusing on the structure of the mind.

Wilhelm Wundt

A German physician, physiologist, and philosopher widely regarded as the father of experimental psychology, who established the first psychology laboratory.

Psychologists

Professionals specializing in the study of the mind and behavior.