Which of the Following Would Reduce the Money Multiplier

question 238

Multiple Choice

Which of the following would reduce the money multiplier?

• A) reducing the reserve ratio
• B) bond purchases by the Fed
• C) cash drains from banks
• D) bank reductions in desired reserve holdings

---

Definitions:

Tying Arrangement

A commercial strategy where a seller requires a buyer to purchase a secondary product as a condition of buying a desired primary product.

Sherman Act

A landmark federal statute in the scope of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic practices and promotes competition.

Per Se Violation

An act that is inherently illegal, without the need for further evidence to prove its unlawfulness.

Economic Harm

Financial damage or loss experienced by an individual or entity due to another party's actions or events.