Business

Abbie Kirk

28 March, 10:08

If the ratio of currency to deposits (cr) increases, while the ratio of reserves to deposits (rr) is constant and the monetary base (B) is constant, then:

A. it cannot be determined whether the money supply increases or decreases.

B. the money supply increases.

C. the money supply decreases.

D. the money supply does not change.

+3

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