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

Name: An increase in the banks' liquidity ratio will increase the rate of growth of the money supply.
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An increase in the banks' liquidity ratio means banks are holding more liquid assets relative to their deposits, which typically leads to a decrease in the amount of money they can lend out. This reduction in lending capacity can slow down the rate of growth of the money supply.

An Increase in the Banks' Liquidity Ratio Will Increase the Rate