Assume many more stores agree to accept credit and debit cards.Which of the following will be a likely outcome?
A) the money multiplier will decrease
B) the money multiplier will increase
C) money supply will decrease, given a fixed monetary base
D) the currency-deposit ratio will increase
E) the reserve-deposit ratio will decrease
Correct Answer:
Verified
Q14: Other things remaining the same, the smaller
Q15: The reserve-deposit ratio is likely to increase
Q16: The stock of high-powered money is increased
Q17: Banks tend to hold some excess reserves
A)for
Q18: High-powered money
A)earns more interest than other forms
Q20: An increase in the market interest rate
Q21: If the Fed imposed a 100% reserve
Q22: If the Fed decreases the reserve requirement,
A)market
Q23: The stock of high-powered money is reduced
Q24: If most economic disturbances are the result
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