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Assuming initially that r = 10 percent and c = 40 percent, a decrease in r to 5 percent causesA) the money multiplier to increase
Assuming initially that r = 10 percent and c = 40 percent, a decrease in r to 5 percent causesA) the money multiplier to increase from 2.8 to 3.11
B) the money multiplier to decrease from 3.11 to 2.8
C) the money multiplier to increase from 2 to 2.22
D) the money multiplier to decrease from 2.22 to 2
Answer:A
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