Evaluate the following argument: "If banks increase their excess reserves, the monetary base will increase. If the monetary base increases, the money supply will increase. Therefore, an increase in excess reserves increases the money supply."

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The Answer of Evaluate the following argument: "If banks increase their excess reserves, the monetary base will increase. If the monetary base increases, the money supply will increase. Therefore, an increase in excess reserves increases the money supply."

Evaluate the Following Argument: "If Banks Increase Their Excess Reserves