Which of the following reduces the money multiplier?
A) Banks loan all their excess reserves.
B) Bank customers hold some of the loan proceeds as currency outside the banking system.
C) The Fed reduces the required reserve ratio.
D) Banks impose a currency drain on bank customers.
E) The Fed sells U.S. government securities.
B
Economics
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Logrolling creates a political market and campaign donations are the medium of exchange
a. True b. False
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For this question, assume that the economy is initially operating at the natural level of output. An increase in unemployment benefits will cause
A) an increase in the real wage in the medium run. B) a reduction in the real wage in the medium run. C) no change in the real wage in the medium run. D) ambiguous effects on the real wage in the medium run.
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