Which of the Following Best Describes the Consequences of an Increase

question 18

Multiple Choice

Which of the following best describes the consequences of an increase in reserve requirements?

• A)The reserve ratio increases, the money multiplier increases, and the money supply increases.
• B)The reserve ratio increases, the money multiplier decreases, and the money supply decreases.
• C)The reserve ratio decreases, the money multiplier increases, and the money supply increases.
• D)The reserve ratio decreases, the money multiplier decreases, and the money supply increases.

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Definitions:

Sensory Memory

The shortest-term element of memory, it allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Atkinson And Shiffrin

A model of memory proposed by Richard Atkinson and Richard Shiffrin in 1968, describing memory in terms of three stores: sensory memory, short-term memory, and long-term memory.

Long-Term Memory

The relatively permanent and limitless storehouse of the memory system. Includes knowledge, skills, and experiences.

Working Memory

A short-term memory system involved in the temporary storage and manipulation of information necessary for complex cognitive tasks like learning, reasoning, and comprehension.