Question
In a system of fractional-reserve banking, even without any action by the central bank, the money supply can increase if households choose to hold ______
In a system of fractional-reserve banking, even without any action by the central bank, the money supply can increase if households choose to hold ______ currency or if banks choose to hold _____ excess reserves.
Select one:
a. more / more
b. more / less
c. less / more
d. less / less
e. none of the above
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Principles of Economics
Authors: Gregory Mankiw
7th edition
128516587X, 978-1285165875
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