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

question 205

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 currency-deposit ratio to 150% causes the M1 money multiplier to ________,everything else held constant.

• A)increase from 0.73 to 0.78
• B)decrease from 0.73 to 0.61
• C)increase from 1.54 to 1.67
• D)decrease from 1.67 to 1.54

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Definitions:

Globulins

A group of proteins in the blood, playing roles in the immune system, blood clotting, and other functionalities.

Hypochromic

Describes blood cells that have less color than normal, usually due to a deficiency in hemoglobin, often associated with anemia.

Microcytic

Relates to red blood cells that are smaller than normal, often associated with iron-deficiency anemia.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the rest of the body.