Everything Else Held Constant,if the Sum of the Required Reserve

question 119

Multiple Choice

Everything else held constant,if the sum of the required reserve ratio and the excess reserve ratio is greater than one,an increase in the currency-deposit ratio causes the M1 money multiplier to ________ and the money supply to ________.

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

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