Everything else held constant, an increase in the required reserve ratio will result in ________ in M1 and ________ in M2.

Everything else held constant, an increase in the required reserve ratio will result in ________ in M1 and ________ in M2.

Everything else held constant, an increase in the required reserve ratio will result in ________ in M1 and ________ in M2.




A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease



Answer: D