The size of the effect of a given deposit of cash into a demand deposit account on the money supply is greater:

a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.


d

Economics

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The language of economics is

a. needlessly arcane. b. valuable because it provides a new and useful way of learning about the world. c. easy to learn within a day. d. unnecessary to learn for a thorough understanding of economics.

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A decrease in the expected inflation rate will

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