If Banks'desired Reserve Ratio Increases from 0

question 43

Multiple Choice

If banks'desired reserve ratio increases from 0.10 to 0.15, the public still desires to hold the same amount of currency, and the Fed takes no actions, the money supply will:

• A)increase.
• B)decrease.
• C)not change.
• D)either increase or decrease.

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Definitions:

Coronary Artery Disease

A condition characterized by the narrowing or blockage of the coronary arteries, leading to a reduced blood flow to the heart muscle and potentially causing heart attacks.

Modifiable Risk Factor

A risk factor for disease or injury that can be reduced or controlled through changes in behavior or environmental exposure.

Sedentary Lifestyle

A way of life that involves little to no physical activity, often associated with increased health risks like obesity and cardiovascular disease.

Diet

The kinds of food that a person, animal, or community habitually eats, often tailored for health, cultural, ethical, or weight-management reasons.