If the Ratio of Currency to Deposits (Cr) Increases, While

question 106

Multiple Choice

If the ratio of currency to deposits (cr) increases, while the ratio of reserves to deposits (rr) is constant and the monetary base (B) is constant, then:

• A) it cannot be determined whether the money supply increases or decreases.
• B) the money supply increases.
• C) the money supply decreases.
• D) the money supply does not change.

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Definitions:

Process of Therapy

The broad sequence of steps or stages through which therapy occurs, from assessment and diagnosis to intervention and evaluation.

Climate

The average weather conditions of a particular area over a long period, including temperature, precipitation, humidity, and wind patterns.

Therapeutic Efficacy

Therapeutic efficacy refers to the ability of a treatment or drug to provide a beneficial effect (medical improvement or cure) on the disease or condition being treated.

Therapeutic Efficacy

The ability of a treatment to produce a beneficial result under ideal conditions.