Multiple Choice
If people decide to hold more currency relative to deposits,the money supply
A) falls.The larger the reserve ratio is,the more the money supply falls.
B) falls.The larger the reserve ratio is,the less the money supply falls.
C) rises.The larger the reserve ratio is,the more the money supply rises.
D) rises.The larger the reserve ratio is,the less the money supply rises.
Correct Answer:
Verified
Correct Answer:
Verified
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