Question

Everything else held constant, an increase in the interest rate paid on checkable deposits will cause ________ in the amount of checkable deposits held relative to currency holdings and ________ in the currency ratio. a. an increase; an increase b. a decrease; an increase c. a decrease; a decrease d.an increase; a decrease

Answer 1

The answer is letter D

Step-by-step explanation:

Everything else held constant, an increase in the interest rate paid on checkable deposits will cause _an increase_______ in the amount of checkable deposits held relative to currency holdings and _a decrease_______ in the currency ratio.