Multiple Choice
Which one of the following will cause a decrease in the money multiplier?
A) An increase in the ratio of reserves to deposits.
B) A decrease in the ratio of reserves to deposits.
C) A decrease in the public's preference for current account deposits as opposed to holding currency.
D) An increase in high powered money.
E) A decrease in high powered money.
Correct Answer:
Verified
Correct Answer:
Verified
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