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Everything Else Held Constant,an Increase in the Excess Reserve Ratio

Question 166

Multiple Choice

Everything else held constant,an increase in the excess reserve ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier.


A) an increase;an increase
B) no change;an increase
C) a decrease;a decrease
D) no change;a decrease

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