8. Changes in the excess reserves ratio Suppose the value of the excess reserves ratio decreases. Then the money supply multiplier will increase Which of the following can explain a decrease in the excess reserves ratio? A relatively small volume of cash transactions A credit crunch O Public mistrust of banks Underdeveloped financial markets A relatively large volume of cash transactions

ECON MACRO
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ISBN:9781337000529
Author:William A. McEachern
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Chapter14: Banking And The Money Supply
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8. Changes in the excess reserves ratio
Suppose the value of the excess reserves ratio decreases. Then the money supply multiplier will increase
Which of the following can explain a decrease in the excess reserves ratio?
A relatively small volume of cash transactions
A credit crunch
O Public mistrust of banks
Underdeveloped financial markets
A relatively large volume of cash transactions
Transcribed Image Text:8. Changes in the excess reserves ratio Suppose the value of the excess reserves ratio decreases. Then the money supply multiplier will increase Which of the following can explain a decrease in the excess reserves ratio? A relatively small volume of cash transactions A credit crunch O Public mistrust of banks Underdeveloped financial markets A relatively large volume of cash transactions
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