Multiple Choice
Which of the following would cause the money supply to increase by less than the amount indicated by the money multiplier?
A) A financial institution lends less than its increase in excess reserves.
B) A person borrowing money converts part of it to cash rather than putting it all in a demand deposit account.
C) Both of the above.
D) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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