Solved

If the Fed Increases the Reserve Ratio from 4 Percent

Question 365

Multiple Choice

If the Fed increases the reserve ratio from 4 percent to 10 percent, then the money multiplier

A) decreases from 25 to 10.
B) decreases from 20 to 10.
C) increases from 10 to 25.
D) increases from 10 to 20.

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