Everything else held constant,if the sum of the required reserve ratio and the excess reserve ratio is less than one,a decrease in the currency-deposit ratio causes the M1 money multiplier to ________ and the money supply to ________.

Question

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A decrease in the currency-deposit ratio means that more money is being held in bank accounts, increasing the amount of deposits available for banks to lend out. If the sum of the required reserve ratio and the excess reserve ratio is less than one, the increase in deposits available for lending will result in an increase in the money supply. The M1 money multiplier will also increase because banks are able to lend out more of the deposits they hold.

Everything Else Held Constant,if the Sum of the Required Reserve