Since reserve requirements on time and savings deposits were phased out in the early 1990s,
a. only the M1 money multiplier is affected by increases in time and savings deposits.
b. only the M2 money multiplier is affected by increases in time and savings deposits.
c. neither the M1 nor the M2 money multipliers are affected by increases in time and savings deposits.
d. both the M1 and M2 money multipliers are affected by increases in time and savings deposits.
B
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If a contractionary monetary policy is adopted, ________
A) the real interest rate will fall B) real output will increase C) the price level will fall D) the demand for labor will increase
In the national income accounts, net interest is the total interest payments received by households on loans made by them minus
A) interest received from households' ownership of government bonds. B) interest payments made by households on their own borrowing. C) interest payments made by households to foreign lenders. D) taxes paid by households on their interest income.