If Bankers Become More Uncertain Regarding Future Deposits and Withdrawals

question 26

True/False

If bankers become more uncertain regarding future deposits and withdrawals and choose to hold more excess reserves against deposits,the money multiplier will increase.

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Definitions:

1930s

refers to the decade known for the Great Depression, a severe worldwide economic downturn that lasted from 1929 to 1939.

Economic Behaviorists

Scholars or researchers who study how psychological and emotional factors affect the economic decisions of individuals or institutions.

Supply Side Economists

Economists who believe in the effectiveness of policies that focus on boosting output and economic growth by increasing the supply of goods and services, often through tax cuts and deregulation.

Classical Economists

Economists from the 18th and 19th centuries who focused on the idea that free markets regulate themselves through the laws of supply and demand.