The larger the public's currency drain from the banking system, the

A) smaller is the monetary base.
B) smaller is the money multiplier.
C) larger is the monetary base.
D) larger is the money multiplier.

B

Economics

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The Keynesian theory of business cycle views volatile expectations of future sales and profits as the main source of economic fluctuations

Indicate whether the statement is true or false

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Which of the following is a liability for the central bank?

A) currency B) bonds C) savings accounts D) loans E) checkable deposits

Economics