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.

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27 November, 04:54

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Easton Webster · Answer 1

C) The Fed increases the required reserve ratio

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.