Multiple Choice
If the reserve ratio decreased from 10 percent to 5 percent, which of the following would happen to the money multiplier?
A) It would rise from 10 to 20.
B) It would rise from 5 to 10.
C) It would fall from 10 to 5.
D) It would fall from 20 to 5.
Correct Answer:
Verified
Correct Answer:
Verified
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