Multiple Choice
If the reserve ratio decreased from 20 percent to 10 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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