Which of the Following Changes Would Clearly Decrease the Supply

question 216

Multiple Choice

Which of the following changes would clearly decrease the supply of money in the banking system?

• A)​an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
• B)​an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
• C)​a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
• D)​a decrease in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves

---

Definitions:

Cellular Modification Theory

A hypothesis in neuroscience suggesting that changes in brain cells' structure or function underpin learning and memory.

Neural Circuits

Complex networks of neurons that work together to process information and execute functions necessary for life and behavior.

Habituation

The process of becoming accustomed to a stimulus through repeated exposure, leading to a decrease in responsiveness.

Sensitization

An increase in the strength or frequency of a response due to the repeated application of a stimulus.