In a Fractional-Reserve Banking System,a Decrease in Reserve Requirements

question 88

Multiple Choice

In a fractional-reserve banking system,a decrease in reserve requirements

• A)increases both the money multiplier and the money supply.
• B)decreases both the money multiplier and the money supply.
• C)increases the money multiplier,but decreases the money supply.
• D)decreases the money multiplier,but increases the money supply.

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Definitions:

Class Consciousness

Awareness of one's social class and its implications, often associated with a sense of collective interests and the struggle between different classes, particularly in Marxist theory.

Educational Capital

Refers to the accumulation of knowledge, skills, and qualifications that an individual obtains through their education, which can influence their social and economic opportunities.

Compensatory Education

Educational policies or programs designed to overcome deficits in a child's educational experiences, aiming to improve skills and provide opportunities especially for disadvantaged children.

Social Programs

Government initiatives designed to provide support and assistance to the population, such as healthcare, education, and housing.