Which of the following combinations would have an indeterminate effect on the size of the money supply?
A) an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
B) an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
C) a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
D) none of the above
Correct Answer:
Verified
Q191: If banks faced a 100 percent reserve
Q192: An increase in the excess reserves banks
Q193: An increase in the excess reserves banks
Q194: Suppose you found $2,000 hidden in your
Q195: The money supply would tend to rise
Q197: Suppose you found $10,000 hidden under a
Q198: Suppose you found $5,000 hidden in your
Q199: Suppose you found $10,000 hidden under a
Q200: If banks faced a 100 percent reserve
Q201: Which of the following is true?
A)Demand deposits
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