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-Refer to Figure 8

Question 76

Multiple Choice

-Refer to Figure 8.1. If the banks' desired reserve ratio (rr) and the public's cash ratio (cr) are constant, the shift in the money supply function from M<sub>0</sub> to M<sub>1</sub> is a result of: A) an decrease in the number of banks. B) a increase in the bank lending. C) a decrease in the monetary base. D) an increase in the real GDP.
-Refer to Figure 8.1. If the banks' desired reserve ratio (rr) and the public's cash ratio (cr) are constant, the shift in the money supply function from M0 to M1 is a result of:


A) an decrease in the number of banks.
B) a increase in the bank lending.
C) a decrease in the monetary base.
D) an increase in the real GDP.

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