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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