Multiple Choice
In the 19th century,when crop failures often led to bank runs,banks would make relatively fewer loans and hold relatively more excess reserves.By itself,these actions by the banks should have
A) increased the money multiplier and the money supply.
B) decreased the money multiplier and increased the money supply.
C) increased the money multiplier and decreased the money supply.
D) decreased both the money multiplier and the money supply.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: The discount rate is<br>A)the rate at which
Q3: The Fed can increase the money supply
Q5: The rate at which the Fed lends
Q6: To increase the money supply,the Fed can<br>A)buy
Q8: The Fed can decrease the money supply
Q9: Which of the following is correct?<br>A)The Fed
Q10: Today,bank runs are not a major problem
Q11: Which of the following increase when the
Q12: When the Fed buys government bonds,<br>A)the money
Q177: If the public decides to hold less