Multiple Choice
Which of the following combinations would have an indeterminate effect on the size of the money supply?
A) an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
B) an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
C) a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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