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4. Which of the following will cause the money multiplier to become larger? a. an increase in money supply b. a reduction in money supply

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4. Which of the following will cause the money multiplier to become larger? a. an increase in money supply b. a reduction in money supply c. a decrease in the ratio of reserves to checkable deposits d. a decrease in the public's preference for checking deposits as opposed to holding currency e. none of these 5. In an economy with commercial banks with the required ratio of reserve to deposit 0.25, an individual's initial deposit of 2000 units at a commercial bank will eventually generate a. 2000 units of overall money

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