Other things equal, when U.S. money moves to other countries to take advantage of better foreign investment opportunities, then:
A) the U.S. money supply will increase.
B) the reserve requirement for U.S. banks will rise.
C) the U.S. money supply will decrease.
D) U.S. banks will have excess reserves to loan out.
E) the effect of the U.S. deposit expansion multiplier will be increased.
Correct Answer:
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