If the currency-to-deposit ratio decreases and the monetary base is unchanged,the value of the money multiplier will ________ and the value of the money supply will ________.

Question

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A decrease in the currency-to-deposit ratio means that people are holding less currency relative to deposits, which increases the money multiplier. With an unchanged monetary base, an increased money multiplier leads to an increase in the money supply.

If the Currency-To-Deposit Ratio Decreases and the Monetary Base Is