Briefly explain whether under normal circumstances the money multiplier will increase or decrease following an increase in
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Briefly explain whether under normal circumstances the money multiplier will increase or decrease following an increase in each of the following, holding other factors constant:
a. The currency-to-deposit ratio (C/D)
b. The excess reserves-to-deposit ratio (ER/D)
c. The required reserve ratio (rrD)
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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