Suppose the M1 multiplier is currently 1.95 and the M2 multiplier is currently 8.03.If people decide to decrease the ratio of nontransaction accounts they hold relative to the amount of their transactions accounts, the M1 multiplier will____ and the M2 multiplier will _____-.
A) not change; decrease
B) increase; also increase
C) decrease; also decrease
D) increase; not change
Correct Answer:
Verified
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A)monetary
Q17: If the M2 multiplier is 8.3, how
Q18: Currency held by the nonbank public plus
Q20: M1 money multiplier equals
A)(transaction accounts + currency)
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