When the reserve requirement is increased, the excess reserves of member banks are O A) increased and the multiple by which the commercial banking system can lend is increased B) Ở BỊ reduced and the multiple.by which the commercial banking system can lend is increased 2o reduced, but the multiple by which the commercial banking system can lend is unaffected OD) reduced and the multiple by which the commercial banking system can lend is reduced
When the reserve requirement is increased, the excess reserves of member banks are O A) increased and the multiple by which the commercial banking system can lend is increased B) Ở BỊ reduced and the multiple.by which the commercial banking system can lend is increased 2o reduced, but the multiple by which the commercial banking system can lend is unaffected OD) reduced and the multiple by which the commercial banking system can lend is reduced
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:When the reserve requirement is increased, the excess reserves of member banks
are
O A) increased and the multiple by which the commercial banking system can lend
is increased
O B) reduced and the multiple. by which the commercial banking system can lend
is increased
C) reduced, but the multiple by which the commercial banking system can lend
is unaffected
D)
reduced and the multiple by which the commercial banking system can lend
is reduced
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