Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, an decrease in the currency-deposit ratio to 30% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.8 to 3.25
B) decrease from 3.25 to 2.8
C) increase from 2.8 to 3.5
D) decrease from 3.5 to 2.8
A
Economics
You might also like to view...
Other things equal, trademarks and brand names:
A. increase the interest-rate cost of funds used to finance R&D expenditures. B. decrease the interest-rate cost of funds used to finance R&D expenditures. C. decrease the expected rate of return on R&D expenditures. D. increase the expected rate of return on R&D expenditures.
Economics
?Each economic model can be applied to many different real-world problems.
Answer the following statement true (T) or false (F)
Economics