During Recessions,banks Typically Choose to Hold More Excess Reserves Relative

question 91

Multiple Choice

During recessions,banks typically choose to hold more excess reserves relative to their deposits.This action

• A)increases the money multiplier and increases the money supply.
• B)decreases the money multiplier and decreases the money supply.
• C)does not change the money multiplier,but increases the money supply.
• D)does not change the money multiplier,but decreases the money supply.

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