Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply.

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