If the Reserve-Deposit Ratio Is Less Than One, and the Monetary

question 98

Multiple Choice

If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will:

• A) increase by $1 million.
• B) decrease by $1 million.
• C) increase by more than $1 million.
• D) decrease by more than $1 million.

---

Definitions:

Ellipse

A geometric shape characterized by its elongated circular form, resembling a flattened circle.

Sanctuary of Fortuna Primigenia

An ancient Roman religious complex in Palestrina, Italy, dedicated to the goddess Fortuna, noted for its unique terraced design and use of concrete.

Barrel Vaults

An architectural element that forms a continuous arched shape resembling a barrel or tunnel and is used to cover a space.

Ashlar Masonry

A highly finished stone work where the stones are cut into uniform shapes and sizes, creating tight joints and a smooth overall appearance.