If the Desired Reserve Ratio Were Increased,what Impact Would This

question 89

Multiple Choice

If the desired reserve ratio were increased,what impact would this have on the money supply and bank loans?

• A)The money supply would tend to increase, but the outstanding loans of banks would tend to decrease.
• B)Both the money supply and the outstanding loans of banks would tend to decrease.
• C)Both the money supply and the outstanding loans of banks would tend to increase.
• D)The money supply would tend to decrease, but the outstanding loans of banks would tend to increase.

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The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

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A principle often associated with utilitarianism, focusing on actions that result in the maximum benefit or happiness for the largest number of people.

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