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Everything Else Held Constant,an Increase in the Currency Ratio Causes

question 165

Multiple Choice

Everything else held constant,an increase in the currency ratio causes the M1 money multiplier to ________ and the money supply to ________.


Definitions:

Cultural Heritage

The heritage consisting of tangible objects and intangible qualities inherited from one generation to the next within a community or society.

Gambler's Fallacy

The erroneous belief that if a particular outcome occurs more frequently in a specific period, it will occur less frequently in the future, or vice versa.

Law Of Small Numbers

The cognitive bias whereby people draw broad conclusions from a small set of observations.

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how similar it is to our stereotypes of similar occurrences.

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