If banks increase their holdings of excess reserves a. the money multiplier increases and the money supply decreases. b. the money multiplier decreases and the money supply increases. c. the money multiplier and the money supply decrease. d. the money multiplier and the money supply increase.
If banks increase their holdings of excess reserves a. the money multiplier increases and the money supply decreases. b. the money multiplier decreases and the money supply increases. c. the money multiplier and the money supply decrease. d. the money multiplier and the money supply increase.
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.5P
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