The _______________ will rise when there is a fall in either the banks' desired cash reserves ratio or the private sector's desired ratio of cash to bank deposits.

Question

Quizplus · Accepted Answer

The money supply multiplier will rise when there is a fall in either the banks' desired cash reserves ratio or the private sector's desired ratio of cash to bank deposits, as both factors increase the ability of banks to lend more, thereby increasing the money supply.

The _______________ Will Rise When There Is a Fall in Either