Question: 9. How would a decrease in the reserve requirement affect the (a) size of the monetary multiplier, (b) amount of excess reserves in the banking
9. How would a decrease in the reserve requirement affect the
(a) size of the monetary multiplier,
(b) amount of excess reserves in the banking system, and
(c) extent to which the system could expand the money supply through the creation of checkable deposits via loans? LO35.5
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