Assuming Initially That the Required Reserve Ratio = 10%,the Currency-Deposit

question 216

Multiple Choice

Assuming initially that the required reserve ratio = 10%,the currency-deposit ratio = 75%,and the excess reserve ratio = 156%,an increase in the required reserve ratio to 15% causes the M1 money multiplier to ________,everything else held constant.

• A)increase from 0.15 to 0.33
• B)increase from 0.54 to 0.67
• C)decrease from 0.73 to 0.71
• D)decrease from 1.67 to 1.54

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Definitions:

AVE (Abstinence Violation Effect)

A psychological phenomenon in which a person experiencing a relapse into substance use feels a sense of failure and helplessness, potentially exacerbating the relapse.

Marlatt

Refers to G. Alan Marlatt, a psychologist known for his work on relapse prevention in the context of addiction and behavior change.

Lifestyle Imbalances

Disparities between different aspects of an individual's life, such as work, relationships, and health, which can lead to stress and dissatisfaction.

Coping Skills

Strategies and techniques that individuals use to manage stress, emotions, and challenges in a constructive manner.