If the Bank of Canada increases the interest rate paid on reserves, banks will tend to hold _____ excess reserves, which will _____ the money multiplier.
A)more; increase
B)more; decrease
C)fewer; increase
D)fewer; decrease

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The Answer of If the Bank of Canada increases the interest rate paid on reserves, banks will tend to hold _____ excess reserves, which will _____ the money multiplier.
A)more; increase
B)more; decrease
C)fewer; increase
D)fewer; decrease

If the Bank of Canada Increases the Interest Rate Paid