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The Money Supply Would Tend to Fall If

Question 188

Multiple Choice

The money supply would tend to fall if:


A) ​banks decide to keep more excess reserves and people convert more of their demand deposits to currency.
B) ​banks decide to keep more excess reserves and people deposit currency in their demand deposit accounts.
C) ​banks decide to keep fewer excess reserves and people deposit currency in their demand deposit accounts.
D) ​banks decide to keep fewer excess reserves and people convert more of their demand deposits to currency.

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