If Banks Become More Pessimistic About the Future of the Economy

question 77

Multiple Choice

If banks become more pessimistic about the future of the economy and increase their holdings of excess reserves, the size of the deposit multiplier will be:

• A)larger.
• B)smaller.
• C)zero.
• D)the same.

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Definitions:

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A collection of records created and stored on a computer.

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Hardware components that convey information from a computer or a computing system to the user, including monitors, printers, and speakers.

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The act of preserving or archiving data in a way that it can be retrieved and used in the future.