An increase in the liquidity ratio will increase the rate of growth of the money supply.

Name: An increase in the liquidity ratio will increase the rate of growth of the money supply.
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An increase in the liquidity ratio typically means banks are holding more reserves relative to their deposits, which can actually slow down the rate of growth of the money supply since less money is being lent out and multiplied through the banking system.

An Increase in the Liquidity Ratio Will Increase the Rate