Question
For a given increase in high powered money the increase in M1 will be lower if the reserve requirement is higher. True False Bank reserves
For a given increase in high powered money the increase in M1 will be lower if the reserve requirement is higher.
True
False
Bank reserves are part of the monetary base or high-powered money. When this is increased the lending ability of the banking system increases and this promotes the growth in the supply of money.
True
False
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
