In a Fractional-Reserve Banking System,an Increase in Reserve Requirements

question 122

Multiple Choice

In a fractional-reserve banking system,an increase in reserve requirements

• A)increases both the money multiplier and the money supply.
• B)decreases both the money multiplier and the money supply.
• C)increases the money multiplier,but decreases the money supply.
• D)decreases the money multiplier,but increases the money supply.

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Definitions:

Ethical Subjectivist

One who believes that morality is nothing more than personal opinion or feelings.

Tolerant

Showing willingness to allow the existence of opinions or behavior that one does not necessarily agree with.

Moral Reasoning

Used when a decision is made about what we ought or ought not to do.

Moral Tragedy

This occurs when we make a moral decision that is later regretted.