Everything Else Held Constant,an Increase in the Required Reserve Ratio

question 121

Multiple Choice

Everything else held constant,an increase in the required reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply.

• A)an increase;an increase
• B)an increase;a decrease
• C)a decrease;an increase
• D)a decrease;a decrease

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Definitions:

Third Variable

A factor that is not directly involved in a research hypothesis but may influence the relationship between the variables being studied.

Correlational Study

A research method that examines the relationship between two or more variables to determine if a correlation exists, without implying causation.

Statistical Significance

Likelihood that a study’s results have occurred only by chance.

Probability

The likelihood or chance that a specific event will occur, often expressed as a ratio or percentage.