Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the required reserve ratio to 15% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.15 to 0.33
B) increase from 0.54 to 0.67
C) decrease from 0.73 to 0.71
D) decrease from 1.67 to 1.54
C
Economics
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Explain what is meant by the economic principle of voluntary exchange
What will be an ideal response?
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If the consumer price index (CPI) is 160 one year and 175 the next, the annual rate of inflation as measured by the CPI is approximately _____
a. 4.5 percent b. 8.6 percent c. 9.4 percent d. 15 percent e. 175 percent
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