Which of the Following Changes Would Clearly Decrease the Supply

question 216

Multiple Choice

Which of the following changes would clearly decrease the supply of money in the banking system?

• A)​an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
• B)​an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
• C)​a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
• D)​a decrease in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves