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

question 24

Multiple Choice

Everything else held constant,an increase in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________.

• A)decrease;increase
• B)increase;increase
• C)decrease;decrease
• D)increase;decrease

---

Definitions:

Chromosomes

Structures within cells that contain DNA and carry genetic information essential for the development, function, and reproduction of living organisms.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for controlling growth, metabolism, and the function of other endocrine glands.

Glial Cells

Non-neuronal cells in the nervous system that support, protect, and nourish neurons, playing crucial roles in maintaining homeostasis.

Pyramidal Cells

A type of neuron found in areas of the brain such as the cerebral cortex, known for their pyramid-shaped cell bodies and involvement in many cognitive processes.