the economics of money, banking, and financial markets

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9. Everything else held constant, an increase in the excess 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