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According to the base-multiplier approach to the money supply, an increase in the reserve/deposit ratio will the money multiplier and thus the total money supply.
According to the base-multiplier approach to the money supply, an increase in the reserve/deposit ratio will the money multiplier and thus the total money supply. decrease; decrease increase; not change decrease; not change increase; increase in the IS/LM model, a monetary expansion causes to shift, thus interest rates. This change in the interest rate investment and therefore output. LM; right; increasing, decreases LM; right; decreasing; increases IS; right; increasing; decreases LM; left; increasing; decreases in the simple Keynesian model, an increase in government spending would cause aggregate demand and output to change by the equivalent increase in government spending in the IS/LM model more than the same amount as less than 50% more than
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