What Impact Would an Increase in the Reserves Banks Want

question 27

Multiple Choice

What impact would an increase in the reserves banks want to hold,together with people depositing currency into their demand deposit accounts,have on the money supply?

• A)It would increase the money supply.
• B)It would leave the money supply unchanged.
• C)It would have an indeterminate effect on the money supply.
• D)It would decrease the money supply.

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