A decrease in ________ leads to an equal ________ in the monetary base in the short run.

A decrease in ________ leads to an equal ________ in the monetary base in the short run.

A decrease in ________ leads to an equal ________ in the monetary base in the short run.




A) float; increase
B) float; decrease
C) Treasury deposits at the Fed; decrease
D) discount loans; increase



Answer: B