When banks reduce the reserve ratio, the potential money multiplier
A) increases.
B) decreases.
C) remains unchanged.
D) sometimes increases, and sometimes decreases depending on the rate of inflation.
A
Economics
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Which of the following are justifications for running a budget deficit?
a. avoiding raising tax rates b. stabilizing an economy during a recession c. both a and b d. neither a nor b
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A quota raises the price of the product on which the quota has been placed, decreases consumers' surplus, increases producers' surplus, and generates tariff revenue for the government
Indicate whether the statement is true or false
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