Solved

If Banks' Desired Reserve Ratio Increases from 10% to 15%,the

Question 85

Multiple Choice

If banks' desired reserve ratio increases from 10% to 15%,the public still desires to hold the same amount of currency,and the Bank of Canada takes no action,the money supply will


A) increase.
B) decrease.
C) not change.
D) either increase or decrease.
E) equal the quantity of currency that is still in usE.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions