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:

Verified
Correct Answer:
Verified
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