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In a Fractional-Reserve Banking System,an Increase in Reserve Requirements

Question 122

Multiple Choice

In a fractional-reserve banking system,an increase in reserve requirements


A) increases both the money multiplier and the money supply.
B) decreases both the money multiplier and the money supply.
C) increases the money multiplier,but decreases the money supply.
D) decreases the money multiplier,but increases the money supply.

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