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Assuming Initially That Rr = 15%,c = 40%,and E =

Question 173

Multiple Choice

Assuming initially that rr = 15%,c = 40%,and e = 5%,an increase in e to 10% causes the M1 money multiplier to ________,everything else held constant.

A) increase from 2.15 to 2.33
B) decrease from 2.33 to 2.15
C) increase from 1.54 to 1.67
D) decrease from 1.67 to 1.54

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