the economics of money, banking, and financial markets

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5. 
   

   Everything else held constant, an increase in the required reserve ratio will mean ____ in
   the M2+ money multiplier and ____ in the M2+ money supply.
   A) an increase; an increase
   B) an increase; a decrease
   C) a decrease; an increase
   D) a decrease; a decrease
   Answer: D
   Diff: 1 Type: MC Page Ref: 16.2A- 2
   Skill: Recall
   Objective List: Appendix: The M2+ Money Multiplier

   
   


6. 
   

   Everything else held constant, an increase in the time deposit ratio will mean ____ in the
   M2+ money multiplier and ____ in the M2+ money supply.
   A) an increase; an increase
   B) an increase; a decrease
   C) a decrease; an increase
   D) a decrease; a decrease
   Answer: A
   Diff: 1 Type: MC Page Ref: 16.2A- 2
   Skill: Recall
   Objective List: Appendix: The M2+ Money Multiplier

   
   


7. 
   

   Everything else held constant, an increase in the time deposit ratio will result in ____ in
   the M1+ money multiplier and ____ in the M2+ money multiplier.
   A) an increase; an increase
   B) no change; an increase
   C) a decrease; a decrease
   D) no change; a decrease
   Answer: B
   Diff: 1 Type: MC Page Ref: 16.A1- 2
   Skill: Recall
   Objective List: Appendix: The M2+ Money Multiplier

   
   


8. 
   

   Everything else held constant, an increase in the money market fund ratio will mean ____
   in the M2+ money multiplier and ____ in the M2+ money supply.
   A) an increase; an increase
   B) an increase; a decrease
   C) a decrease; an increase
   D) a decrease; a decrease
   Answer: A
   Diff: 1 Type: MC Page Ref: 16.2A- 2
   Skill: Recall
   Objective List: Appendix: The M2+ Money Multiplier