Halving the Required Reserve Ratio Would, Other Things Being Equal

question 21

Multiple Choice

Halving the required reserve ratio would, other things being equal,

• A)double the money supply.
• B)halve the money supply.
• C)increase the money supply, but by less than double.
• D)decrease the money supply, but by more than double.

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Definitions:

Social Facilitation

The enhancement of a person's performance when doing simple or well-practised tasks because of the presence of others.

Dominant Response

The most common or likely reaction that a person exhibits in response to a specific situation or stimulus.

Social Facilitation Theory

The theory that the presence of others enhances an individual's performance on simple or well-learned tasks but may impair performance on complex or new tasks.

Social Facilitation Theory

The concept that an individual's performance is enhanced when they are observed by others.