If People Decide to Hold More Currency Relative to Deposits,the

question 101

Multiple Choice

If people decide to hold more currency relative to deposits,the money supply

• A)falls.The larger the reserve ratio is,the more the money supply falls.
• B)falls.The larger the reserve ratio is,the less the money supply falls.
• C)rises.The larger the reserve ratio is,the more the money supply rises.
• D)rises.The larger the reserve ratio is,the less the money supply rises.

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Definitions:

Peripheral Route

A method of persuasion that relies on superficial cues rather than the merit of the message.

Cognitive Structures

Cognitive structures are mental frameworks or patterns that guide individuals in understanding the world, organizing information, and making sense of experiences.

Dishonest

Lacking honesty or integrity; prone to lie, cheat, or deceive.

Insincere

Lacking honesty and genuine feelings; not expressing true intentions.