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1. How will each of the following affect the money supply through the money multiplier process? Explain. a) People hold more cash. b) Banks hold more excess reserves. c) The Fed increases the required
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1. How will each of the following affect the money supply through the money multiplier process? Explain.

a) People hold more cash.
b) Banks hold more excess reserves.
c) The Fed increases the required reserve ratio.

User Mohamed Abo Elmagd
by
4.8k points

2 Answers

5 votes

Answer:

C) The Fed increases the required reserve ratio

User Jack Lloyd
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5.4k points
4 votes

Answer:

C

Step-by-step explanation:

User Spectre
by
5.4k points
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