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

question 73

Multiple Choice

Everything else held constant,if the sum of the required reserve ratio and the excess reserve ratio is less than one,a decrease in the currency-checkable deposit ratio will mean

• A)an increase in currency in circulation and an increase in the money supply.
• B)an increase in money supply.
• C)a decrease in the money supply.
• D)an increase in currency in circulation but no change in the money supply.

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