Everything else held constant,an increase in wealth will cause the holdings of checkable deposits to the holdings of currency to ________ and the currency ratio will ________.

Question

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When wealth increases, people tend to hold more money in checkable deposits relative to currency because deposits can earn interest or be used more conveniently for transactions. This means the ratio of checkable deposits to currency increases. However, the currency ratio (currency relative to deposits) decreases because a smaller proportion of a person's wealth is held in currency.

Everything Else Held Constant,an Increase in Wealth Will Cause the Holdings