Suppose the Required Reserve Ratio Increased from 10% to 20

question 313

Multiple Choice

Suppose the required reserve ratio increased from 10% to 20%. This would:

• A)reduce the money multiplier from 10 to 5.
• B)increase the amount of excess reserves available.
• C)increase the money multiplier from 5 to 10.
• D)not change the money multiplier.

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