Multiple Choice
If the monetary base fell and the currency-deposit ratio rose but the reserve-deposit ratio remained the same, then:
A) the money supply would fall, but not by as much as it would have fallen if the reserve-deposit ratio had risen.
B) the money supply would fall, but not by as much as it would have fallen if the reserve-deposit ratio had fallen.
C) the money supply would fall more than it would have fallen if the reserve-deposit ratio had risen.
D) it is impossible to be certain whether the money supply would fall or rise in this case.
Correct Answer:

Verified
Correct Answer:
Verified
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