If banks increase excess reserves to increase their ability to absorb a higher rate of defaults, the _____ multiplier will _____.
A) potential; rise
B) potential; fall
C) actual; rise
D) actual; fall

Question

Quizplus · Accepted Answer

The Answer of If banks increase excess reserves to increase their ability to absorb a higher rate of defaults, the _____ multiplier will _____.
A) potential; rise
B) potential; fall
C) actual; rise
D) actual; fall

If Banks Increase Excess Reserves to Increase Their Ability to Absorb