Quizzol

QUESTION:

If banks increase their holdings of excess reserves, _______.

a. the money multiplier decreases and the money supply increases

b. the money multiplier increases and the money supply decreases

c. the money multiplier and the money supply increase

d. the money multiplier and the money supply decrease

ANSWER:

d. the money multiplier and the money supply decrease

Posted by Cleveland on September 9, 2024